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To: Huebolt
Complicated issue. The brick and mortar businesses must collect state and local taxes on its sales. Internet businesses have an advantage and can sell things more cheaply as a result.

On the other hand, Congress is placing a burden on Internet businesses that brick and mortar businesses don't have to do. The Internet businesses must collect taxes for all states and localities. A brick and mortar business does not unless they required all purchasers to identify their state.

Five states have no sales tax: NH, DE, OR, AK, and MT. So a brick and mortar business in those states would be required to have each customer provide a state of residence, calculate the sales tax for the that state, collect it, and then deposit into that state's coffers. Under the proposed Internet law, the brick and mortar businesses would not be required to collect such taxes.

70 posted on 04/23/2013 4:11:27 PM PDT by kabar
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To: kabar

Five states have no sales tax: NH, DE, OR, AK, and MT. So a brick and mortar business in those states would be required to have each customer provide a state of residence, calculate the sales tax for the that state, collect it, and then deposit into that state’s coffers. Under the proposed Internet law, the brick and mortar businesses would not be required to collect such taxes.

The only “good” thing could be that it could cause more states to get rid of their state sales taxes.


75 posted on 04/23/2013 4:19:32 PM PDT by GraceG
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