One step closer to a Taxable Internet

Not that this news (http://www.washingtonpost.com/wp-dyn/articles/A29267-2003Jan22.html) got me excited or anything, but it's good to stay informed, here's a bit to get you started:

Lawmakers and tax officials from more than 30 states are meeting today in Tampa, Fla., to lay the groundwork for taxing digital services sold on the Internet, such as downloadable music, movies and software.

The two-day conference is led by a coalition that last fall approved a plan to make it easier for states to collect sales taxes on products sold over the Internet.

Thinking of online hardware retailers, for example, I believe this could become a large disadvantage as this would add to the cost + the usual shipping we are used to pay when buying online. A medium sized store could become less competitive than larger retailers such as Best Buy, etc.

I have one question. There are no Good Service Tax in US for the sales of goods online?

These politicians need their fat tax a..es tarred and feathered. What scumbags!!! I hope somebody takes down all their names so we know who not to vote for. Real scummy thieves!!!!!!!!!!!!

leper

In several states you already have to pay tax on online purchases. It is called a Consumer Use Tax. It is collected (or refunded) when you file your State Tax return. The way it works is that any purchase you make outside the state you live in must have equal tax paid as if it were purchased in the state. If say sales tax was 2% higher in the other state, you would be subject to a refund of that 2% but if it was 2% lower, you must pay the difference. This tax covers all purchases made outside the state whether mail order, online, or whatever the means. The exceptions are cars, and non-tangible purchases. I don't know how many states have this law, but I do know that Alabama does, and I remember people telling me other places had it as well.

As far as i know here is Australia through my experience in purchasing my speakers online, the only tax applied was Good Service Tax(GST) slightly more than 20% if i m not mistaken.