Tuesday, May 7, 2013

Sales Tax Legislation Now in Congress

There is Legislation moving its way through Washington DC right now which could change the way sales tax is charged on internet sales.  The bill has already been approved by the Senate, and is currently in the House Judiciary Committee.

States collect sales tax to support state functions.  It's no secret that states are losing sales tax money on internet sales.  Purchasers of goods on the internet are supposed to pay the sales tax to their state...  like that happens!  This legislation would require that all online businesses charge, collect and pay sales tax on all of their sales online.  Businesses with less than $1,000,000 in sales are excluded.

Because of the exclusion, most of you are now muttering, "then why should I care - I'm excluded."  As a business, correct, you are.  But as a consumer, you would be impacted.  Tax free online sales could become a thing of the past.

I'm wondering if this legislation, if passed, pushes people to shop locally.  After all, if you're going to pay the sales tax anyway, does that dilute the cost savings of an online purchase enough to make the shopper go into a store and buy the item?  Does having it now outweigh the marginal savings and having to wait for it through the shipping time?

All interesting questions, the answers to which can only be predicted and guessed.   

1 comment:

  1. interesting questions...I think that our shopping habits won't change that much, if we see something we like, we generally buy it. Marketing has a lot of control over our impulses, and I wish I had $1,000,000 in sales...:0)