State Laws Vary
The laws governing the collection of sales tax in any state can be complex. They also vary from state to state. There have been many attempts to come up with a uniform sales tax system that would be fair to the consumer and, at the same time, guarantee collection of tax on all applicable sales. Individual states are also working to ensure that out-of-state companies servicing their companies in state and selling their products through local outlets are collecting and reporting sales tax.
Some states (including California) have laws that require buyers of out-of-state goods to pay a use tax – a law that would increase state revenues significantly, but is difficult to monitor or enforce.
Finally, there is the never-ending debate regarding the legalities of selling via the Internet without collecting or reporting sales tax. Brick and mortar businesses feel that selling tax-free via the Internet gives online sellers an unfair advantage. Internet sellers think they should not have to collect sales taxes. It remains to be seen how the issue will be resolved.
Categories: Business, Education, Marketing Tags: State Laws Vary
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