You'd Better Watch Out

[David Farber <dave () farber net>]

Hhow about telephone sales?? Djf


------ Forwarded Message
From: Randall <rvh40 () insightbb com>
Date: Sat, 25 Dec 2004 08:25:15 -0500
To: cyberia <CYBERIA-L () LISTSERV AOL COM>, "This is not a gentle place."
<cuckoosnest () riddlemaster org>, Dave <dave () farber net>
Subject: You'd Better Watch Out

http://news.yahoo.com/news?tmpl=story&cid=74&u=/cmp/20041224/tc_cmp/56200341
&printer=1

Online Sales Tax Enforcement May Become Certain In 2005
Thu Dec 23, 3:59 PM ET

The proposed passage of federal legislation to enforce the collection of
sales taxes on Internet sales is gaining momentum and is likely to
become a major effort before Congress in 2005, as states and
municipalities work to coordinate the effort to help fill their depleted
treasuries.

The collection of online sales taxes, which has frustrated states for
years, needs federal legislation to give the states the wherewithal to
enforce the collection of the sales taxes. Most states currently require
the collection of sales taxes on items bought over the Web and through
catalogs, but most consumers don't know they are required to pay the
taxes and most businesses don't charge for the taxes because they
maintain the process is too complicated.

Senator Mike Emzi (R-Wyo.) has proposed legislation that would establish
more uniform sales tax procedures throughout the nation and give
individual states more power to enforce the collection of the sales
taxes. Also aggressively promoting the legislation is Sen. Lamar
Alexander (news - web sites), (R-Tenn.).

"Everything is at the critical state right now," said Jon Abolins of
sales tax provider Taxware LP in an interview Thursday. "Eighteen states
have enacted legislation and another 22 are working on it." Once the
number of states hits a critical mass, the legislation's chances of
final passage are enhanced, Abolins said.

"I think there's a better chance than even of getting the legislation
this coming year," said Abolins. "There's no national election in 2005.
State senators and lobbyists are all over Capital Hill pushing for the
legislation." 

As things stand now, sales taxes in most states " a few states have no
sales taxes " are a patchwork quilt of regulations from state to state
and from municipality to municipality. Much of the confusion centers on
nexus " the situation in which a retailer has a store or other physical
presence in a state. For instance, a retailer based in California would
not have to pay sales taxes on items shipped to customers in New York if
the retailer had no facilities or physical presence (nexus) in New York.

"The states are asking Congress to remove the nexus (issue)," said
Abolins, who is senior vice president of operations at Taxware, which
creates software that automates sales tax transactions. He noted that
Congress does not want to levy any federal sales taxes, but simply wants
to help states enforce their sales tax activities.

"Almost no states enforce sales tax collection," said Alolins, "It's up
to the consumer to pay sales taxes, (but) most consumers don't know they
should pay sales taxes voluntarily."

States have banded together to lobby for passage of the issue in the
Streamlined Sales Tax Project. Another group that is lobbying to pass
the federal legislation is the National Conference of State
Legislations. 



------ End of Forwarded Message


-------------------------------------
You are subscribed as interesting-people () lists elistx com
To manage your subscription, go to
  http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/