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.© NRF | All Rights Reserved