Sales taxes are supposed to be paid on most online purchases, but they rarely are. With their budgets in crisis, states are determined to get their share. Msnbc.com's Alex Johnson reports.
It’s too early to know exactly how much the Nebraska chapter of the March of Dimes raised this week at its annual Signature Chefs Auction in Omaha, but odds are that more than 10 percent of the charity’s proceeds are going straight to the tax man.
That’s because the March of Dimes went online when it bought about 4,000 T-shirts from a Florida vendor to give to donors during its March for Babies Walk last April. The charity often buys supplies and other materials online, and it also raises money online by selling items at auction — racking up a big tax bill in each case.
“We didn’t know that,” said Rosemary Opbroek, director of the Nebraska chapter. “We wish the law was different. It is taking money away from helping ... babies.”
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I would think that the March of Dimes is probably tax exempt so it shouldn't make a difference for them.
ReplyDeleteAs a 503c non-profit organization, shouldn't they have a tax exemption for such purchases? I thought non-profits were exempt from paying certain taxes, including sales tax on some purchases. I get the sales tax needs to be paid from the online sales they made, but why from the purchases?
ReplyDeleteThis is an important issue, but the larger, more serious thrust is the government getting its hooks into the internet on an ever increasing scale....if they are going to tax things, don't they need access to info they can't get yet? Yeah, I KNOW they can "get" whatever they want, but this will FORCE companies and people to give it up...
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