| The web has revolutionized our lives. You would | | | | they can't carry debt. Instead, they have to cure |
| not be reading this article online even just fifteen | | | | any deficit immediately. One area they are looking |
| years ago. The technology just wasn't there. | | | | at now is the online sales tax. Now, they've come |
| Now, we have virtual people getting married! Wait, | | | | up with a pretty interesting way to get it. |
| I'm not sure if that is a good thing. | | | | Let's assume you buy something online from |
| The one area of much controversy on the web | | | | Amazon, Overstock, eBay or whomever. If the |
| that doesn't get a lot of ink, but is about to, is the | | | | site doesn't collect sales tax [and your state |
| sales tax issue. Simply put, there is none. I live in | | | | charges it], you are usually legally required to |
| San Diego. If I buy a book from Amazon.com, I | | | | calculate the tax and send it in to the state with |
| don't pay any sales tax on it since the site doesn't | | | | your tax return. Almost nobody knows this much |
| collect it. If I buy the same book down the street | | | | less does it. Since states can't access the |
| at a Barnes & Noble, I do pay sales tax because | | | | information of the online stores, they can't track it |
| the store is here in California. | | | | and there have been no audits performed. |
| As you might imagine, local retailers think this is a | | | | The new state laws aim to change this. States |
| tad unfair. Maybe they are right. Maybe they | | | | like Colorado and California are taking a new |
| aren't. Up to now, however, no state has been | | | | approach. They are passing laws requiring the |
| able to come up with a way to force Amazon | | | | online retailers to collect and pay sales tax OR |
| and other big retailers into collecting and paying | | | | total up the amount due for each taxpayer in the |
| the taxes. There are laws on the books from the | | | | state and send the report to both the state and |
| 1970s related to catalog sales that hold that such | | | | taxpayer who must then remit the amount due. |
| companies do not have to deal with sales taxes if | | | | This new approach is definitely going to turn into a |
| they don't have a physical presence in the states | | | | trend that most states will follow. If it passes |
| in question. Up to now, this standard has been | | | | muster in the courts, you'll receive a bunch of |
| applied to the web as well. | | | | sales tax statements every year in [probably] |
| Up to now! | | | | January and have an even bigger tax bill when tax |
| As you know, the government is dead broke. | | | | season rolls around. |
| The Federal Government is sitting on over $13 | | | | Oh, joy. |
| trillion in debt. States are in worse shape because | | | | |