Online Sales Tax in Play in Washington State
Tuesday, January 02, 2007
Senate bill passed in 2006 may go to full House
It appears likely that both the House and the Senate in the state of Washington will vote on proposed legislation that would allow the state to begin collecting sales taxes on Internet purchases.
The Tacoma News Tribune is reporting this morning that legislators in Olympia will take up the issue in the new year after a bill passed by the Senate failed to make it to the full House in 2006. The proposed legislation would also tax mail-order purchases.
"For years, retailers and local governments engaged in a fierce debate over the proposed rewriting of state tax code - called the streamlined sales tax, or SST. Some cities didn't like it because it would collect taxes where a buyer lives rather than where a sale takes place or where the merchandise is shipped from," reports the paper online.
As ATR detailed in "Should eBayers Pay the Piper? IRS says Yes" last month, the Federal government is looking to close what it is calling the "tax gap" between what online sellers earn and what they claim. Now the state of Washington is looking to close its own tax gap via this proposed sales tax. Is this fair? Does this level the playing field for bricks-and-mortar businesses? Please share your thoughts.
It appears likely that both the House and the Senate in the state of Washington will vote on proposed legislation that would allow the state to begin collecting sales taxes on Internet purchases.
The Tacoma News Tribune is reporting this morning that legislators in Olympia will take up the issue in the new year after a bill passed by the Senate failed to make it to the full House in 2006. The proposed legislation would also tax mail-order purchases.
"For years, retailers and local governments engaged in a fierce debate over the proposed rewriting of state tax code - called the streamlined sales tax, or SST. Some cities didn't like it because it would collect taxes where a buyer lives rather than where a sale takes place or where the merchandise is shipped from," reports the paper online.
As ATR detailed in "Should eBayers Pay the Piper? IRS says Yes" last month, the Federal government is looking to close what it is calling the "tax gap" between what online sellers earn and what they claim. Now the state of Washington is looking to close its own tax gap via this proposed sales tax. Is this fair? Does this level the playing field for bricks-and-mortar businesses? Please share your thoughts.
posted by Chris and Frank at 12:55 AM
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