Streams

Internet Sales Tax Could Boost State Coffers

Monday, April 29, 2013

After years of on-again-off-again debate, Congress is close to passing a bill that would require online retailers to collect sales tax. The move would end the advantage the virtual marketplace has over local bricks-and-mortar stores

New York has had such a law on the state books since 2008, but it hasn’t been fully applied – partly due to a legal challenge. James Parrott, from the non-profit Fiscal Policy Institute, says sales tax collection would be more consistent under the new federal law.

“It creates a level playing field across states, makes it easier to administer, makes it harder for online retailers to escape the taxation of their online sales,” he explained.

Parrott estimates the new law would produce $1-$2 billion of new sales tax dollars. Annually, New York State collects about $25 billion in sales tax, which is typically split 50-50 between the state and local cities and counties.

Tags:

More in:

The Morning Brief

Enter your email address and we’ll send you our top 5 stories every day, plus breaking news and weather.

Comments [1]

Philip Cohen from Australia

Firstly, this is not an additional tax, it is simply an application of the sales tax on goods sold commercially via the internet and that have hitherto avoided the tax that B&M merchants have always had to pay …

And, as I understand it, online merchants with a turnover of less than $1,000,000 per annum are exempt from collecting this sales tax...

Only the utterly unscrupulous eBay could have the utter gall to call on eBay's small to medium sellers—those that the “Ho” abuses on a daily basis—to help them and their preferred big box merchants defeat this quite reasonable online sales tax measure ... hopefully, the Ho’s efforts will be in vain …

And, Oh no, not another "reduction" in eBay user fees ... http://bit.ly/YvxFEg

Apr. 29 2013 09:43 PM

Leave a Comment

Email addresses are required but never displayed.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by