Thursday, June 13, 2013

To Tax or Not to Tax

The bill would empower states to require online retailers to collect state and local sales taxes for purchases. The taxes would be remitted to the state where the customer lives. Under current law, states can only require retailers to collect sales taxes if they have a physical presence in the state. Under the bill, online retailers would collect an estimated $22 billion to $24 billion in now uncollected taxes.
While a Senate vote hasn't yet been scheduled (not to mention if and when the House will take up the issue), this is a good time to think about the issue philosophically and decide whose side I'm on, big-box brick-and-mortar retailers or online retailers. As the editor of a publication that targets omnichannel retailers, I'm in a conundrum about whose cause to champion.