Legal Niches

Mass Rep. Targets Online Retailers With State Sales Tax Plan

By james_fudge

Rep. Bill Delahunt (D-Mass.) is proposing a tax on online retailers that could affect online interstate commerce profoundly, and online retailers are deeply concerned about the impact.

Delahunt proposes legislation that would give states, many of whom are facing record budgetary shortfalls this year and in the foreseeable future, authority to enforce a streamlined interstate sales tax system. According to Politico, two dozen states have signed on to this interstate compact.

Basically, states would have the power to impose sales tax on companies that do business with customers in their jurisdictions. The Supreme Court has already ruled that states can only levy sales taxes against companies that have a physical presence in a given state. Nevertheless, Delahunt wants to give states a new revenue stream. Here's what he had to say about the new legislation: Read More

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Full post as published by GamePolitics.com on July 14, 2010 (boomark / email).