After years of attempts to craft a federal law that would affirm states’ rights to tax online purchases, the issue may still be far from being resolved. The House Judiciary Committee has put the brakes on the Marketplace Fairness Act passed by the Senate in May.
Online State Sales Tax Solution Remains Elusive After Congress Declares ‘Fundamental Defects’ In Senate Bill
Since 1999, shoppers in Connecticut have not had to pay the state’s 6.35% sales tax on gun safes and other firearms-safety items, but someone forgot to tell the Walmarts of Connecticut, which have been improperly charging the tax to customers. [More]
A Pennsylvania man’s purchase of two cans of shaving cream at Walmart has ballooned into a lawsuits against the nation’s largest retailer, which stands accused of not taking coupons into account when calculating sales tax. [More]
If you’re one of the many Amazon customers whose state has yet to reach an agreement about the collection of online sales tax, this will probably be bad news. This afternoon, the Senate voted in favor of the Marketplace Fairness Act, which would give each state the authority to compel online businesses to collect applicable taxes. [More]
There have been multiple attempts in recent years to push through some sort of federal law that would allow for state governments to collect sales tax on residents’ online purchases, but none have made it very far. However, a Senate vote this afternoon shows their might be some life in the latest iteration of the Marketplace Fairness Act. [More]
For several years, there has been a lot of talk — and a handful of legislative efforts — regarding a federal law that would give states the authority to compel online sellers to collect sales tax on purchases. None of these bills have passed, so it’s time to try again. [More]
Amazon E-Mailing Tennessee Residents To Remind Them Of Sales Tax Obligation [UPDATE: South Carolina Too]
Even if your state doesn’t require Amazon to collect sales tax on purchases, you’re still supposed to be paying any applicable tax to the state when you file your annual tax returns. Virtually no one does. That’s why Amazon is e-mailing customers in Tennessee to remind them of their obligation. [More]
Back on New Year’s Eve, we predicted that a new state law intended to compel Amazon to collect sales tax on purchases made by Georgia residents would probably fail — and that seems to be exactly what is happening. [More]
Starting tomorrow, Georgia will begin enforcing a new law intended to compel Amazon and other e-tailers to collect sales tax on purchase in that state. But it looks like Amazon may have a pretty easy work-around. [More]
Residents of Massachusetts, your days of “tax-free” shopping on Amazon are numbered, as the state’s governor has announced that the e-tail giant will begin collecting sales tax on purchases made by Mass. residents starting next fall. [More]
In a story we’ve been following with great interest for quite some time, the top court of the state of New York has ruled that lap dances are not a form of performance art and are therefore not exempt from sales taxes. [More]
Starting September 15, Amazon.com will start collecting sales tax on purchases made by residents of California. So with the clock counting down, a number of shoppers in the state are buying what they can in the next week and a half.
To kick off the weekend, Amazon will be collecting a 6% sales tax on orders shipped to Pennsylvania starting on Saturday, because of a state directive that requires it do so. A spokesman said that despite the fact that the company had fought the sales tax, Amazon had to reverse its position to comply with the state.
Back in April, the New York Attorney General’s office filed a lawsuit against Sprint, alleging the wireless provider deliberately under-collected sales tax in an effort to remain competitive. Now, Sprint has revealed that it is under investigation by the Securities and Exchange Commission over these same allegations.
The halcyon days of not paying sales tax (even though you’re obliged to) on your Amazon purchases may be coming to an end once and for all, as members of Congress are doing more than just talking about the issue. Next Tuesday, the House Judiciary Committee will hold a hearing on the merits of creating a law allowing states to compel online retailers to collect sales taxes.
One of the few knocks against online retailers is the difficulty in getting your purchase immediately, meaning people continue to go to bricks-and-mortar stores when they need to get their hands on an item right away. But it looks like Amazon could take away that advantage from its competitors by expanding the number of warehouses it has around the country.
If the ongoing battle between online retail giant Amazon and individual states has taught us anything, it’s that there’s a lot of money to be made from e-sales taxes. And since we as customers aren’t so great when it comes to paying those on our own, states across the country are ramping up efforts to have those taxes levied by the retailers themselves.