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 Q:
Isn't this just advocating a new tax on the Internet?
A: No. Requiring
on-line merchants to collect sales tax does not create a new
tax. Forty-five states currently impose sales and use taxes
on the purchase of products and goods. Main Street retailers
are required to collect these taxes on behalf of the states.
However, a tax loophole exempts some out-of-state remote sellers
from this tax collection obligation. In this instance, consumers
are supposed to pay, or remit, a comparable "use" tax directly
to his or her state. These "use" taxes currently exist in
all 45 states that impose sales tax. Unfortunately, many consumers
are unaware of or often ignore this "use" tax requirement.
By law, consumers are required to pay either their state sales
tax or their state use tax. Retailers believe all shoppers
and businesses should be treated fairly. Moreover, the industry
supports equitable collection of retail sales and use taxes
regardless of where a customer chooses to shop.
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