States Face Billions In Budget Deficits
Simmering for more than a decade, the battle over Internet sales taxes has boiled over in many states across the nation.
Facing a $1 billion budget deficit, Gov. Martin O'Malley has joined a long line of governors seeking to collect sales taxes from online retailers. E-commerce has grown 15 percent, to a $165 billion industry, which could produce billions of dollars in tax revenue for states.
A loophole allowing retailers without a store in Maryland to avoid collecting sales taxes is about to be challenged. Website retailers cite a Supreme Court decision that granted them the exemption. Maryland lawmakers will address the issue in the next session of the General Assembly. Supporters include local retailers, who have to charge and pay the sales tax. They claim the exemption creates an unfair playing field. Opponents are the big Internet retailers who avoid state taxes and sometimes use loopholes even when they have local operations.
No sale tax offsets the shipping cost. Sales tax collection will stop or slow down internet sales for sure.Places who do not collect it are favored now. We all are trying to save what we worked for. Not too willing to share our money with ones who didn't work for it
ReplyDeleteJust more of a reson to shop in Delaware, like Delmar, Rehoboth, Dover etc...
ReplyDeleteHere's the solution...Invest in UPS or FedEx....buy from out of state with an internet sales provider that doesn't charge tax - pay the shipping with the firm you invest in....shoots the Annapaholes in the foot and boosts the stock that you hold. It isn't a perfect solution...but it is akin to buying stock in a fuel company and using their fuel to go to Delaware to buy tax free.
ReplyDeleteI would rather spend a buck in gas to save ninety cents in taxes that I know most are being spent against my desires!
All businesses in Maryland have to do is set up a website, and encourage shoppers to buy on line.
ReplyDeleteIt's easier to beat than you think:
ReplyDeleteUse Walmart's Ship to Store for Free for a store in DE. Pick it up there. No shipping. No sales tax. Couldn't be easier (or cheaper).
Greedy bastards
ReplyDeleteCan you spell Delaware?
ReplyDeleteMany online retailers collect sales tax but do not submit it to the State(s) where the items are shipped. They are the ones who need to be addressed the most. I believe that a Federal court has held that states could not force tax collection on web sales if they do not have a physical presence in the state. But, as I said, if the company is charging it, they should submit it.
ReplyDelete