Democratic senator proposes sales taxes on all online sales

STAFF REPORT

Tuesday, April 12, 2011, 11:30 p.m. — If a bill proposed by Democratic Sen. Dick Durbin of Illinois becomes law, you’ll be paying sales tax on Internet purchases no matter where the retailer is located.

In a story published today on the tech news website CNet.com, it was confirmed that Durbin is planning to introduce the Main Street Fairness Act, a bill that would end the era of tax-free online sales. All sales would conceivably be subject to sales tax — even online auction transactions.

Sen. Mike Enzi, a Wyoming Republican, plans to co-sponsor the legislation when it is introduced.

Online sales are subject to sales tax if the business has a presence in that state; but taxes are not collected otherwise.

One of the biggest arguments against collecting sales taxes online has been the complexity of collecting sales taxes that vary by state — and in some instances, by city.

To read more of this story, follow this link to the CNet.com web site.

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