Did you know that, if passed, legislation in Congress would require all online and mail-order retailers to collect sales taxes from buyers across state lines?
It’s Tax That Is Already Owed
Technically, consumers are supposed to report and pay online sales tax when they file their taxes. Since we buy so much online now, it’s hard to keep track. States are losing money because they aren’t able to collect on it all. Even though it may not feel like it in the short run, consumers aren’t actually paying any more in sales tax than they are supposed to be. They are just paying it up front when they place their online orders instead of paying it later when they file taxes.
Online Sales Tax in the News
According to online sources, 17 of the top 20 online retailers already collect sales tax in 38 of the 46 states that have sales tax. Smaller companies are the ones that have held back due to the work that is involved in figuring out tax rates for over 9,600 tax jurisdictions.
For more information, check out these news articles:
Sales Tax on ProClip USA Orders
In addition to Canada GST/HST and Quebec (QST), we have now expanded our USA sales tax collection (from 5 states) to include additional States (listed below) with plans to add more States in the future.
Presently, all orders that are shipped to addresses in the following states are now subject to sales tax: Arkansas, Connecticut, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming
By collecting sales tax, online retailers help level the playing field with brick-and-mortar stores who may lose business to customers who consult the store for information, but then buy the products online. We know people generally do not like tax, but it’s something that’s hard to avoid, and even more so now. It’s important to us to be up-to-date on all laws and legislation, including this impending legislation.