Newburyport Daily News – Online sales tax plan faces challenge
“We’ve developed compelling legal arguments and plan to seek an injunction before this law goes into effect,” said Steve DelBianco, executive director of NetChoice, which represents Overstock.com, eBay, PayPal and other e-commerce businesses.
“The state doesn’t have the legal authority to tax businesses that don’t have a physical presence within the state,” he said. “Courts have consistently blocked such attempts.”
DelBianco said the rules would have a “boomerang effect” on Bay State retailers and consumers, who would be obligated to pay sales taxes on out-of-state transactions.
“That means every Massachusetts business that simply creates a website would find itself subject to the taxation and regulation of every other state,” he said.
“It’s a novel approach, but a blatant violation of that act,” DelBianco said.
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