Internet Tax

Federal and state legislative activity surrounding the internet retail tax remains high. It’s important to understand the legislation — both passed and proposed — that may affect your business.

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05/06/13
The US Senate voted in favor (69 to 27) of The Marketplace Fairness Act, which would allow the 45 states (and the District of Columbia) that currently charge sales taxes to require online retailers with at least $1,000,000 in annual sales in a state to collect sales tax from purchasers in that state. Under current Federal law, online retailers are only required to collect sales tax in states where they have a physical presence. The Act must still be approved in the US House of Representatives before becoming law; however, if passed, the Marketplace Fairness Act may alleviate qualifying states from having to pass affiliate nexus tax legislation in order to require online retailers to collect and remit sales tax.

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Internet Tax Key

Resources

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Federal Tax Proposed in 23 states that could potentially end the internet retail tax
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