Yes, they are, actually. Look up "use tax" sometime for more details. Generally, you are supposed to self-report these types of purchases and pay the taxes on them. Most people do not do so, of course, which shows that a) the laws lack "teeth" and b) large-scale tax disobedience works.
That said, I see no logical, moral, or ethical reason (other than implementation issues) why internet/mail order/etc. shopping should be free of state and local taxes. The biggest argument is always which jurisdiction to tax in -- I say split the difference and charge half the tax rate for each of the seller's and buyer's jurisdictions, and remit the revenues accordingly.
E.g., seller lives in an area with a 5% sales tax. Buyer lives in an area with an 8% sales tax. On a $100 purchase, the seller's side tax would be $2.50 (2.5% of $100) and the buyer's side tax would be $4.00 (4% of $100), for a total tax of $6.50.
kevkrom, you were saying — That said, I see no logical, moral, or ethical reason (other than implementation issues) why internet/mail order/etc. shopping should be free of state and local taxes. The biggest argument is always which jurisdiction to tax in — I say split the difference and charge half the tax rate for each of the seller’s and buyer’s jurisdictions, and remit the revenues accordingly.
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Well, for one example of how one company does it — is Apple, through it’s Apple iTunes store. First the Apple iTunes store has each county’s tax figures. That’s a “piece of cake” and shouldn’t be any problem at all. You simply have all the counties in the United States and it goes into a “table” and you’ve got the tax rate associate with each zip code. The zip code tells what county.
Now, there are times when they may not have the exact county, so they will ask on the form and list the relevant counties. For example, in a Portland address, there are three possible counties, so if the iTunes store cannot distinguish which of the three it is — it simply asks you, and you do the pull-down menu and choose the county.
But, it’s *so darned simple* — it’s like falling off a log, even simpler than that. It’s all in a table, and all the rates are there, linked to addresses. You get the address and BINGO! — you’ve got the tax rate.
And with this *all* being done by computer, it’s like..., uhhhh..., well..., 2 plus 2... that hard...
All this stuff about how difficult it is and all the trouble and so on..., is an absolutely ludicrous idea, if you know “computers”... It’s as difficult as making an address label to use for mailing... LOL...
Heck! From Internet order form, to order, to check to taxing authorities... a human being never touches it... It’s all done by machines and nothing more is needed. It’s not that hard to do.