States yearn to collect online sales taxes

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The problem.

The problem is the number of tax agencies that would have their fingers in the pie, and their rules. If I remember correctly, there are something like 3600 separate agencies that could collect on that sales tax. That is: states, counties, cities, towns, boroughs, economic development zones, etc. Each and every one of which has their own rules for:
1. Which items are taxable. In some places, food is not taxed, in other places it is(but not neccessarily all foods).
2. The dollar amount at which the tax rate becomes effective. Ex. CT only charges tax on clothing if the total dollar value is >50USD
3. The tax rates for specific classes of items. In some places, food is taxed at a different rate than say clothing, and some clothing types may be taxed at different rates than others.
4. The fact that all of the items above, and many more, are subject to change at the whim of the legislatures, at any time.

Those are just a few reasons. A better question is why should a business in in one state be responsible for collecting taxes for agencies in other states?

Posted by: Letophoro   Posted on: 04/15/05 You are currently: a Guest | Members login | Terms of Use

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