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eCommerce Bytes – New Developments in Online Sales Tax Debate

eCommerce Bytes – New Developments in Online Sales Tax Debate

Some like NetChoice point to the fact states have a way to collect taxes on purchases made by residents from out-of-state retailers – they require their own citizens to pay “use” tax for transactions in which out-of-state retailers don’t collect the “sales” tax. 

NetChoice is a trade association of ecommerce businesses and writes on its website, “most states have done little to educate consumers about their use tax obligation or to provide them with an easy mechanism for compliance. This suggests there may not be enough revenue involved for the states to invest time and resources in its recovery.”

NetChoice Executive Director Steve DelBianco said of today’s developments:

“This ruling gives the state what it wanted all along – a case they could appeal to the US Supreme Court. If the high court takes this case, we will be ready to show that the perspective of a few large online retail defendants is only a small part of the story. In fact, many thousands of smaller businesses would bear disproportionate burdens and costs if they are forced to become tax collectors for 12,000 jurisdictions across 46 states.”