THE INTERNET TAX, THE GOOD, BAD AND UGLEY

Part II

In my last blog on this issue I give a general over view of the federal Marketplace Fairness Act, also referred to as the internet sales tax bill, and of the “Sales and Use Tax” law.  At that time the bill passed the US Senate and was working its way through the US House of Representatives.  Recently the Speaker of the House, John Boehner (R-OH), referred the bill to the House Committee on the Judiciary and the Committee Chairman, Bob Goodlatte (R-VA), announced his committee will not take up the bill.  So at this point it looks like the bill will die in committee and it is not something we need to worry about.  I will keep you up to date if things change.

However this does not relieve the small business owner from being concerned about sales tax in other states.  The current law requires a business to collected sales tax in other states if there is a business presence in those states.  A business presence is not only established by having a physical office or store but a business presence can also be established by other means, like print advertising or establishing a business relationship with a independent repairman to service warranty claims.

If you sell a product or service out of state, I encourage you to have a review of your potential sales tax liability to see if you have or have not a business presence out of state.

If you have any questions, please call this office to see if you have any reason for concern