Congress created the Internet Tax Freedom Act. The law forbids states from taxing the internet.
H.R. 1552, the `Internet Tax Nondiscrimination Act,' preserves and promotes the commercial potential of the Internet by protecting electronic commerce from discriminatory State and local taxes. H.R. 1552, as amended, accomplishes this purpose by extending for an additional 2 years the moratorium on multiple and discriminatory taxes on electronic commerce created by the Internet Tax Freedom Act of 1998. 1
The Streamlined Sales Tax Project is a good idea without much political pull. The Project's goals are "develop measures to design, test and implement a sales and use tax system that radically simplifies sales and use taxes." Sounds good, but not enough to get around the Internet Tax Freedom Act. Florida is going to have to look elsewhere for tax revenue.
Just so you know, it's not really moot. Floridians who don't voluntarily pay the tax using this form (PDF) from the Department of Revneue are, in fact, breaking the law.
ReplyDeleteFlorida law does not specify the Internet -- it includes remote purchases via mail or telephone, too.
Bear in mind, just because we pay sales tax to Wal Mart or Saks Fifth Avenue, that is not technically true. Stores offer to collect the tax as defacto extensions of the state, and get to keep a portion of the collections to cover the cost. The same thing would be true of remote retailers - they could sign up to remit sales taxes to the state and keep a percentage to cover the costs.
Jim, how many internet retailers will sign up to be taxed? Seriously.
ReplyDeleteJust so you know, it's not really moot. Floridians who don't voluntarily pay the tax using this form (PDF) from the Department of Revneue are, in fact, breaking the law.
ReplyDeleteSounds illegal for Florida to make someone "voluntarily" pay for something the state won't officially tax. How many people have actually been convicted for not paying this tax. I'm betting enforcement is laxed.
Otherwise, this is vthe usual splitting hairs we do to each other.
Michael,
ReplyDeleteI saw your post, and I thought you might be interested in this report we put out on the Internet Tax Moratorium. (http://www.itif.org/files/ITFA.pdf)
It explains the moratorium in detail and gives reasons why Congress should make it permanent.
Keep in mind this moratorium primarily deals with taxing Internet access (i.e. DSL, cable, satellite) and is different than the sales tax issue -- which is the question of whether states can charge sales tax on out of state Internet transactions.
If/when sales tax is implemented on internet sales, I will not purchasing anything. Why would I pay tax AND shipping.
ReplyDeleteThe way it is now, on a big purchase you can save quite a bit on the lack of tax, albeit you do pay shipping. I would rather see UPS get a fee rather than the state parasites.
The idea that "you are in fact breaking the law" by not voluntarily paying the tax is the most laughable thing I have seen in quite sometime...no one is goingh to report themselves.
If they do implement this tax, I will will make one more very large purchase for my main online supplier before it goes into effect, then continue with my local activities buying used from private parties and avoiding these parasitic taxes.
The people should spend the least amount they can get away with as regards sales tax collection until such time as the gov gets it that more tax equals less revenue. I will do my part, what about you?