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Old 12th May 2008, 03:08 PM   #2
pete
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Join Date: Jul 2005
Location: Hampton Roads, VA
Posts: 488
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As an individual consumer and citizen I feel that all Internet sales should be taxed according to the laws of the state where they are being shipped / used / downloaded. Tax avoidance in not a legitimate use of the Internet.

However, I would also expect to see it applied to phone and mail order sales, as well. None should have an advantage over the other.

(Not to be confused with "taxing the Internet" which is an entirely different subject, regarding ISP and network services being taxed, like taxing radio signals.)

As an online seller, I dread to see it come to pass. It will truly be a nightmare to administer, not as much from charging the taxes, a bit of software revision will handle that, but as far as reporting and paying to untold tax jurisdictions.

And the degree that the individual states decide to push, as far as just the base state rate, or individual locality rates, or even to the "sewer district" or "transportation district" level could cause many sellers to become major scofflaws.

I can see an entire new industry that will do nothing but process sales by Zip Code or some other definition and handle the administration of nothing but sales taxes, possibly deducting the proper amount, plus their pound of flesh, from each sale at the time of sale, similar to PayPal and some card processors.
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