E-Commerce

Included in the state budget passed this week by the New York legislature is a provision that requires online retailers, including Amazon.com, to collect state and local sales taxes.

Independent booksellers and other retailers fought hard for the measure's passage, which eliminates a long-standing bias in tax policy. For more than a decade, local retailers have had to tack an extra 8 percent on to every sale while competing against a formidable rival""Amazon.com""that did not have to collect this tax. More

The bill, sponsored in the Senate by Byron Dorgan (D-SD) and Michael Enzi (R-WY) and in the House by Rep. Bill Delahunt (D-MA), gives Congressional approval to a national compact made up of states that have simplified and aligned their sales tax rules and regulations. More

The state of Iowa is in the process of removing a direct link to Amazon.com from the homepage of its official web site (http://www.iowa.gov). Under the new policy, visitors who click on the prominently placed graphic, "Looking for books about Iowa? Click Here Now," will be directed instead to a page with links to both Amazon.com and Booksense.com, an e-commerce site for independent bookstores.

The decision followed a letter sent by the owners of nine Iowa bookstores. More

In a decision that may galvanize action in other states, the California Board of Equalization (BOE) has ruled that online bookseller Borders.com must collect state sales tax.

Under a 1992 Supreme Court decision, Quill Corp. v. North Dakota, states cannot compel out-of-state companies to collect sales taxes unless the company has a physical presence, or "nexus," in the state. More

Arkansas has enacted a law that clarifies that retailers with stores in the state must collect sales taxes on any online purchases made by state residents.

As noted in the story above, under a 1992 Supreme Court decision, Quill Corp. v. North Dakota, states cannot compel out-of-state companies to collect sales taxes unless the company has a physical presence, or "nexus," in the state. More

Efforts to apply sales taxes equally to both bricks-and-mortar and online retailers have made substantial progress since our last update (see January 2002 issue), yet it is likely to be several more years before a level playing field becomes a reality.

The Supreme Court has ruled that states cannot compel out-of-state companies, including internet and catalogue retailers, to collect state and local sales taxes. More

In December, representatives of the 29 states participating in the Streamlined Sales Tax Project (SSTP) approved model legislation that they hope state legislatures will adopt this year. If enacted, the legislation would move states one step closer to a sales tax system that applies equally to both traditional and electronic retailers.

A US Supreme Court ruling bars states from requiring remote sellers, including mail order and internet companies, to collect sales tax. More

In an effort to raise funds, thousands of public schools are encouraging parents and neighbors to shop on-line. More than a dozen new companies, such as Schoolpop.com and SchoolCash.com, have created web portals that enable users to shop a hundreds of on-line retailers. More

In September, California Governor Gray Davis vetoed a bill that would have clarified state law to require that all retailers with a physical presence in the state collect sales tax on internet transactions.

Despite the veto, the campaign to enact the bill accomplished a great deal by raising awareness and building support for tax fairness at both the state and national level. More