Senate shows support for internet sales tax

[Heath]

http://hosted.ap.org/dynamic/stories...03-22-20-13-33

WASHINGTON (AP) -- Advocates of an effort to help states collect taxes on Internet sales won a symbolic but important victory Friday as the Senate signaled solid bipartisan support for the proposal.

Senators voted 75-24 for a nonbinding measure that endorses giving states more power to collect existing sales taxes on purchases their residents make from out-of-state Internet companies.

Though the vote was merely a show of sentiment, the one-sided outcome showed that supporters of collecting the levies could prevail should the Senate consider binding legislation later this year.

A congressional battle over the issue has been simmering for years, pitting Internet companies against traditional retail stores.

Part of what is at stake is potential revenue for cash-starved state governments across the country. An estimated $20 billion in sales taxes go uncollected annually by out-of-state online merchants.

Supporters also argue that not collecting the levies is a competitive disadvantage for retail stores, which must collect local sales taxes.

One sponsor, Sen. Richard Durbin, D-Ill., said Internet sales taxes should be collected "so those local businesses will have a fighting chance."

Sens. Mike Enzi, R-Wyo., and Lamar Alexander, R-Tenn., were other chief sponsors.

[L-Pink]

Again this is not an internet tax. It's states simply trying to collect existing sales/use taxes that have been in effect in every state for decades

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[TheFootMan5]

Originally Posted by L-Pink

Again this is not an internet tax. It's states simply trying to collect existing sales/use taxes that have been in effect in every state for decades

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That makes no sense

[L-Pink]

Originally Posted by TheFootMan5

That makes no sense

Sure it does. Every time you purchase something in the US there is a state sales or use tax added to the price. Just because you ordered something online doesn't mean you can avoid the use tax. In most states there is even a line item on the tax forms for declaring this.

"A use tax in United States is complementary to sales tax which means, if you buy a Taxable product/services without paying any Sales tax to vendor, you owe use tax. You must self assess use tax and pay it directly to the state where the products were consumed or services were rendered."

What congress is trying to do is make amazon for example collect the tax just like any store in a mall has to and pay it to the state just like any store in the local mall has to. Nothing new or sinister going on just a loophole being closed.

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