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Brick and Mortar Retailers Push for Online Sales Tax
State and local officials in the United States, together with large retailers who generally realize revenues through traditional in-store sales (rather than online sales) are supporting a bill in Congress that will require online retailers to charge sales tax to both in-state and out-of-state consumers. Currently, online retailers are not required to collect sales tax in states where they do not have a business presence. Supporters of the bill argue that the current situation results in an unfair advantage for online retailers, who are able to charge lower prices as a result of not having to collect sales tax. Online retailers, including the Electronic Retailing Association, have maintained that charging such a tax would require compliance with thousands of distinct state tax rules and definitions that would not only harm small business but impede e-commerce generally. The bill, however, proposes to allow states to enact a simplified or uniform sales tax system that would remove the administrative burden for online retailers and streamline the process for collecting sales tax. The bill is part of the 9 year-old Streamlined Sales Tax Project which ultimately seeks to generate billions of dollars in tax revenue, if successful.
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http://www.mercurynews.com/business/ci_12275109