Thursday, March 04, 2004

States Bent on Collecting Internet Tax

From Yahoo! News:
Remember all those gifts you bought online during the holidays? Now it's time to pay sales tax on them, at least so say the income tax forms of 20 states.

The latest to outstretch that revenue-seeking hand are New York and California, which this year added a line requiring taxpayers to declare any tax they owe on out-of-state purchases.

Though state revenue agencies similarly sought sales tax on mail-order items before the e-commerce boom of the late 90s, Internet sales have "really shined a spotlight on it and increased the urgency," said Harley Duncan, executive director of the Federation of Tax Administrators.

By law, residents are supposed to pay sales taxes to their states if they order books, clothing, computers and other items by mail or online from businesses based elsewhere.
...
In Ohio, when the line was added to tax forms four years ago, 52,000 taxpayers participated. In 2002, the number dropped to 46,000, out of 5.7 million total returns, said Gary Gudmundson, a spokesman for the Ohio tax department. The state raises about $2 million, but projects that about $500 million goes uncollected.

Matt's Chat

Gov. Bob Tax, Sen. DeWhine, and Sen. Voinorich (all RINOs) can BITE ME too...

Mark's Remarks


Unfortunately, Voinovich won in the primaries....I voted for Mitchel. In many reasons because of this issue. Voinovich and the others Matt mentioned are being ridiculous. The whole reason more people are being chased from conventional stores is because of the outlandish taxes. The reason more companies are going overseas? High taxes and outrageous regulations. And John F'n Kerry thinks raising taxes is the answer? I don't think so.