Online Retailers Get Ready: T Day is Coming
By: Lindsay Sisk, Gable Tax Group
Two weeks ago, my blog post explained how Amazon decided to start collecting sales tax in all 45 jurisdictions and how this could potentially impact everyone. Well, it’s officially starting, or as I’m calling it “T Day” (awesome, right?).
On Thursday, April 28, 2017 the Online State Sales Tax Bills were re-introduced for consideration with the federal government. The goal is to update the current sales tax law to require online retailers to collect sales tax on items where they do not have a physical presence (or no nexus).
Brick and mortar stores are tired of being at a sales tax disadvantage, not only losing business to convenience (who wants to go anywhere anymore, apparently, no one) and competing against online stores that give an automatic 5-10% discount because they don’t have a sales tax collecting obligation. Jurisdictions are tired of missing out on sales tax revenue, trying to find the collection shortage.
As a consumer, this may change your current shopping habits, no longer having a discount incentive, you might even go back into the world of trying clothes on before you buy them (is 2008 calling?).
However, this will mostly impact online retail tax departments everywhere. Are you up to date on jurisdictions that require tax permits? Did you know Alabama, Colorado, and Louisiana cities, counties, and parishes require separate tax forms? What are you using for a tax engine? These questions can leave your head spinning as well as be out of your knowledge base.
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