Sales Tax on the 'net in effect?

[Kevin C. Tofel]

This is probably old news to most folks, but it was just mentioned on The Screen Saves (TechTV), so I thought to share:

Internet sales tax is apparently now being collected in 38 states. My state is either not one of the 38 OR vendors haven't yet updated their systems because I don't see the tax.

More details at: cnet.com (http://news.com.com/2100-1017-983636.html)

If you were thinking of buying that new PDA or 1Gb CF card on-line, I say go for it now....

:evil:

KCT

[PetiteFlower]

Whether sales tax is collected on online purchases has to do with a lot of factors and will vary wildly depending on the site. I used to work for a company that managed web sites for about 50 different land-based stores, all with different policies. For our sites that did not allow purchases made online to be returned to the land-based store, we only had to charge sales tax in PA, where the company's home office was, and KY, where the warehouse was located. For stores that DID allow online purchases to be returned to land-based stores, they had to charge tax in every state where one of those retail stores was located...except in states where there IS no sales tax like Delaware. However for example the Dell site seems to charge sales tax in every state, even though I don't think they have a physical presence in mine I had to pay. And some sites don't seem to charge any tax at all. I think there are a lot of complicated legal issues going on.

Anyway not ALL sites are involved in this agreement anyway, so I don't think you have to worry too much.

[Pony99CA]

One of the worst parts of this is a retroactive tax. Here's what that C|Net link had to say about Target's site.


"Effective February 2, 2003, target.direct and marshallfields.direct will be required to charge sales tax in all states other than Alaska, Hawaii, and Vermont. The new collection requirements will apply to all orders shipped and charged on or after February 2, 2003, even if your order was placed prior to this date," the posting said.

I can understand why they're doing this -- because they don't charge you until they ship the items. However, as a consumer, I would argue that this is almost like a bait-and-switch. I made a purchase, and even got a confirmation, that did not include sales tax, and I would expect whatever site I ordered those goods from to honor that commitment. A posting past the date of my order should not affect me.

I might accept it if a retailer E-mailed me a notice telling me that they have to charge tax and gave me the option to cancel my order. Then again, I might consider filing a class action lawsuit. :-D

Steve