AP: Sales tax breaks for Internet purchases starting to erode
The Associated Press has this story at MLive: Buying on web to avoid sales tax could end soon.
A snippet:
In hopes of unraveling the complex tax rules — and bringing states more money — 22 states and many brick-and-mortar retailers support the efforts of a group called the Streamlined Sales Tax Governing Board. The group is getting states to simplify and make uniform their numerous tax rates and rules, in exchange for a crack at taxing online sales.
Among other things, participating states need to change how they define things such as “food” and “clothing.” For example, one state might now consider a T-shirt clothing and tax it as such, while another might consider it a sporting good and tax it differently.
In response, more than 1,100 retailers have registered with the streamlining group and are collecting sales taxes on items shipped to states that are part of the agreement — even if they are not legally obligated to. …
New Jersey, Michigan and North Carolina are among the largest of the 19 states that have adjusted their tax laws to fully comply with the group’s streamlined setup.
Posted: January 12th, 2009 under In the News, Taxes.
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