Online retailers could begin collecting state sales tax
As Congress gets closer to passing two pieces of legislation, retailers that conduct operations solely online could soon be required to start collecting state sales tax from purchases.
According to Independent Retailer, many states across the country have been arguing for online sales to be taxed, even if the retailer does not have a storefront location where the buyer is located. Supporters of the bills say that a large amount of money is lost each year for local and state governments, and internet shoppers should already be paying the amounts. The two potential laws, titled the Marketplace Equity Act and the Marketplace Fairness Act, would require states to create agencies that would collect, administer and oversee online sales taxes. Smaller internet businesses would be exempt from the law, reports the source.
Many states have already begun implementing policies that would help to collect the online taxes, but the current legislation would bolster those efforts, writes Bloomberg Businessweek. Although many previous forms of the two proposals have been put forth before Congress, they have not had the support and backing that the recent bills do, as ecommerce continues to grow within the retail industry.
