Should internet sales be taxed?

Should access to the internet also be taxed (see map below)? With respect to the sale of goods online, the general rule under current law is that the States can only collect sales taxes from retailers that have a physical presence within State boundaries, but last May the US Senate passed (in a 69-27 vote) a bill that would authorize State legislatures to tax the online sales of out-of-state businesses. (The Senate bill, however, exempts businesses with less than $1 million in annual out-of-state sales.) Should the House of Representatives follow the Senate’s lead or continue the current tax holiday for most internet sales?


Read more here. Map courtesy of www.lao.ca.gov

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About F. E. Guerra-Pujol

When I’m not blogging, I am a business law professor at the University of Central Florida.
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