Hidden Nook

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Wednesday, August 31, 2005



State Taxes On Internet Sales?


[Media Source*]

(Hat Tip: World Mag Blog)

(Yahoo News) Going online to buy the latest bestseller or those photos from summer vacation may be tax free for most people today, but it won't last forever. Come this fall, 13 states will start encouraging — though not demanding — that online businesses collect sales taxes just as Main Street stores are required to do, and more states are considering joining the effort.

Right now, buyers are expected to pay sales taxes on Internet purchases themselves directly to the state when they pay their income taxes. But it's not widely enforced, and states say it costs them upwards of $15 billion a year in lost revenues, collectively.

Editor's Note: Although taxes is something that every God fearing citizens (as well as the non-believing) should pay, this author finds it ridiculous to pay a sales tax for products purchased over an international community. The question of who would pay tax to whom would arise, especially if a person was for an example, a citizen of California buying merchandise from Texas while in Nebraska.

A 1992 U.S. Supreme Court ruling forbids states from forcing a business to collect their sales taxes unless the company has a physical presence in the affected state. The court noted the dizzying array of tax jurisdictions and widely varying definitions of taxable goods, such as fast food versus groceries.

Editor's Note: The Supreme Court seems to have spared yet another tax upon the backs of American citizens, something we should all be grateful for as that means more change in our pockets. It is the opinion of this blogger that the government taxes individuals beyond what is reasonable, and although we are required by federal and spiritual law to pay one's taxes, it isn't fun giving half of one's income to the IRS.



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