Sales tax on internet sales has been a growing issue around the country. Amazon is being challenged by others including North Carolina, Rhode Island, Colorado. Texas sent them a bill for $269 million last fall.
Does Sears, Penneys and other major retailers charge a sales tax or collect that sales tax for online/catalog sales? Interesting debate beginning on the subject across the nation.
..................Does Sears, Penneys and other major retailers charge a sales tax or collect that sales tax for online/catalog sales? Interesting debate beginning on the subject across the nation................
Yes they do! And if they price e-commerce merchandise the same as retail commerce, collect the sales tax, and charge shipping, they will lose customers big time.
But it’s a hell of alot cheaper to stock a warehouse,(probably the same warehouse that is currently restocking your retail stores) and wave fill orders on massive conveyor belts, and pass some of that savings on to the internet customer, to somewhat equalize with the street price.
Hell, Sears (and Montgomery Ward) was doing that for a century with it’s catalog business, becoming the biggest retailer in the world - (and even appeasing the greenies of the time by recycling the catalog in the outhouse.)
It’s time to level the playing field, and have e-commerce customers pay the sales tax, and have the e-retailer reflect their selling model in their resale margins.
If they have a store in that state will charge sales tax. If they have NO presence in the state , then no they don’t.
I think if ecommerce reaches close to half of all commerce, or close, there will definitely be a sales tax on it. It is a new phenomenon, so there isnt much legally written about it, but ecommerce is still commerce.
How would it be fair if Amazon didnt have to pay sales tax while Barnes N Noble did? That would almost look like the govt is subsidizing one vendor against another to give a competitive edge.