Online Sales Tax Again

I know, I know. I’ve blogged about this issue a lot. But it’s an interesting topic, and one that will be with us for awhile. And so, I found this piece pretty interesting. It says that the sales tax effect on online shopping is minimal. In other words, at least in Texas, a state where Amazon has begun collecting sales taxes on purchases, there has been no significant decline in sales. If this information is accurate and representative, it may mean that one justification for requiring online sellers to collect the taxes – to level the playing field for brick and mortar retailers – may not carry so much weight. But it also means that if states require online retailers to collect sales taxes, that will not cause buyers to stop using the service. And that means revenue increases for cash strapped states. From my own perspective, I don’t like to shop in malls. Online shopping is convenient, quick and easy. And those advantages exist even if the online seller collects sales taxes. I suspect lots of folks in Texas feel the same way.