E-Commerce Times Talkback
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In 1998, Congress enacted the Internet Tax Freedom Act, effectively banning sales taxes on sales on the Internet, with some exceptions. Its purpose was to encourage and foster the growth of Internet business. Internet sales totaled an estimated $155 billion in 2010 and will reach about $250 billion in 2011, according to Forrester. Given these numbers, and the state and local budget crises, many states and the U.S. Congress are now considering reforming the Internet Tax Freedom Act to allow for Internet sales taxes.
Thanks for a great post on internet sales tax. It is a little scary to think about how this will affect online retailers and their customers. Will prices go up? Will customers just have to pay more? What will it look like for the store owner from an administrative perspective?
We did a blog a while back to help our customers with these questions. Our CEO, Kevin Sproles, was featured in Venture Beat with his thoughts on internet sales tax: http://bit.ly/hMsHr2
Take a look at our blog/video for a quick recap and thanks again for your post!