Internet sales now equate to 3 % of all retail sales in the US,
or about $79 billion, according to Forrester Research. Much of this
revenue is untaxed.
The complexity of the state and federal tax systems has meant
that an internet company based in one state, taxing a customer from
another state, has so far not been forced to levy a retail tax on
the price of the goods bought.
However, a recent case established that if the company had a
physical presence in the state then that company would have to levy
retail tax on customers from that state purchasing on-line.
The sponsor of the new Bill that effects the change in
California, Senator Dede Alpert, said: “These taxes have always
been owed. Every time someone in California buys from an internet
company, they owe us tax and are supposed to pay."
He added, "I want to emphasize that this is not a new tax. This
is a better collection of an existing tax."
According to the Washington Post, 39 states and the District of
Columbia are already planning to streamline their tax systems to
allow for on-line sales tax collection.
