“Here is a little trigger warning for readers tired of the issue — I’m writing about online sales taxes again.
So what’s new? Well, at of the beginning of the new year in 2017, the 45 states and the District of Columbia — those that collect sales taxes — are still struggling to capture lost revenues from online sales.
Why are they struggling? Well, Congress and the Supreme Court still have not provided an easy path around the court’s 1992 ruling in the Quill v. North Dakota case. The Quill case dictated that sellers must collect sales tax from out-of-state customers only if they have a physical brick-and-mortar presence in the customer’s state of residence.
Yet a growing number of states are extending sales taxes to online retailers with in-state sales affiliates. Amazon, the online retail giant, now collects sales taxes in all but a dozen of the U.S. states that collect sales taxes – including Alabama, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, and Texas”…