California Expands Efforts to Collect Taxes From Internet Sales: Local Agency Revenues to Benefit

摘要

While lost revenue from these transactions may have been negligible in the past, Internet sales have more than tripled since 2000, and California and its in-state retailers have had enough. The effort to collect this revenue is complicated by Supreme Court decisions, Congressional inaction and consumer confusion, but the potential revenues for state and local government are enormous. Not collecting sales tax provides out-of-state online retailers a significant price advantage over in-state "bricks and mortar" businesses. In-state retailers must collect and remit sales taxes. They complain that their stores have become showrooms for products that consumers later purchase via the Internet.