Entries in Sales Tax (3)


Online Sales Tax Breaks May End

Ryan McVay/Photodisc/Thinkstock(NEW YORK) -- Consumers in many states may soon have to say goodbye to tax-free online shopping.

By a large bipartisan majority, the Senate voted for an amendment to the budget bill, which would require all retailers to collect and report sales tax. The House has yet to vote on this.

The Marketplace Fairness Act covers brick-and-mortar stores and online sites. “It’s not a tax,” says David Korn of the National Retail Federation, who supports the amendment. “The era of digital commerce has created challenges for state sales tax laws.”

Even Amazon backs the proposal, despite its long opposition to collecting sales taxes. One reason for Amazon’s change of heart is its decision to build more regional distribution centers to speed up deliveries of its goods.

Brick-and-mortar retailers have long argued that they are at a disadvantage, because they have to collect sales taxes while online competitors are exempt. Supporters of the Marketplace Fairness Act say it would level the playing field.

Copyright 2013 ABC News Radio


Get Ready to Pay Online Sales Tax

iStockPhoto/Thinkstock(NEW YORK) -- A price break for online shoppers may be ending soon, with growing support for sales taxes on purchases made on the Internet. This means many online shoppers would pay at least 5 percent more than they do currently.

Republicans in Congress have joined Democrats to support a bill that would give states authority to force Amazon, eBay, and other online companies to collect sales taxes.

Republican governors are “eager for new revenue to ease budget strains," and "are dropping their longtime opposition to imposing sales taxes on online purchases,” reports The Wall Street Journal. It's “a significant political shift” that could lead to a change in federal law.

Brick-and-mortar retailers have long argued that they face an unfair price disadvantage, but the change amounts to a tax hike for many consumers.

Copyright 2012 ABC News Radio


The End of Tax-Free Online Shopping?

Ryan McVay/Thinkstock(NEW YORK) -- Tax-free shopping for online goods may soon become a thing of the past.

A bill in Congress would make collection of sales tax a standard practice on the web -- something traditional brick and mortar retailers argue is a matter of fairness. 

Stores do all the work, says a top executive at the National Retail Federation, and then online competitors steal the sale because they don’t have to charge state and local sales taxes.

Now, there’s growing bipartisan support in Congress for legislation to require big online retailers to collect those taxes no matter where you shop.

Copyright 2012 ABC News Radio

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