The issue
Due to a 1992 U.S. Supreme Court ruling, online stores and catalog retailers with no physical presence (store, business office or warehouse) don’t have to collect sales taxes.
In November, Georgia Revenue Commissioner Doug MacGinnitie had this to say: “When Georgia sales tax is not charged by the online retailer, it becomes the purchaser’s responsibility to remit use tax on the purchase.”
Retailers’ view
On Nov. 30, Paul Misener, Amazon.com’s vice president for global public policy, told Congress the following: “States need the freedom to make their own revenue policy choices. Congress should protect the states’ rights and authorize them to require collection of sales tax revenue already owed ... .
“Fairness among sellers should be created and maintained. Sellers should compete on a level playing field. Congress should not exempt too many sellers from collection, for these sellers will obtain a lasting un-level playing field versus Main Street and other retailers. Congress should rectify the current imbalance and avoid a future imbalance.
“Fortunately, today’s computing and communications technology will allow all online sellers to collect and remit tax like Main Street retailers.”
Julie Coons, president and CEO of the Electronic Retailing Association, wrote in a November essay for USA Today: “... Despite a decade of work, states continue to struggle to produce a simple streamlined tax regime. Currently available software solutions are cost prohibitive and do not protect businesses from audit liability in states where they do not maintain a ‘physical presence.’
A new and misguided tax will devastate businesses working to survive in these harsh economic times. Massive cost increases would result, and new regulatory burdens would significantly damage e-commerce and the consumers who rely on it.”
Sources: www.nolo.com; USA Today; Amazon.com.
