Should individual states be allowed to tax all online purchases made by residents of their state, even to companies with no physical presence in their state? Previously, online makes sense because they had a physical presence in the state. Then some states were there was no physical presence for large online retailers, like Amazon, changed the rules and redefined what it meant to have a physical presence in the state to include companies that paid anyone in the state that solicited business for an online retailer as being physically present in the state and therefore these states simply changed the rules.
Now, pending in Congress since 2013 is the Market Place Fairness Act which would make it a federal law allowing all states to collect sales tax from online state transactions. This law is still pending and in its third version.
Including state, local, county, municipal, etc. there are approximately 9,600 taxing jurisdictions. The online retailer Overstock. com spent over $1.3 million to add just one state to its sales tax collection system.
Is the Market Place Fairness Act a good idea? Do you think it will hurt online ups that are online because they cannot afford a brick and mortar store? Is this just a money grab by state and local jurisdictions? Will it influence your online shopping?