Online Sales Tax Update

I blogged back on July 23 about proposed federal legislation that would permit states to compel online retailers to collect sales taxes. I got a few comments bemoaning the notion of new taxes, but just to be clear, this would not create any new taxes. The legislation would simply allow states to more effectively collect existing taxes that rarely get paid. The proposed legislation that “nothing in this Act shall be construed as encouraging a State to impose sales and use taxes on any goods or services not subject to taxation prior to the date of the enactment of this Act.” This is called “political cover.” And in case you’re interested, the tax would be applied by the state to which the items are shipped. And in case you’re really interested, here’s a copy of the bill.