Internet Sales Tax Debate

The fight over internet sales tax is becoming a hot topic, of sorts, in the Dothan area.
Small online businesses are weighing in on the issue.

Proposed legislation is going through Washington that would possibly allow states to mandate sales tax whenever you make a purchase online, that tax could really hurt small business that operate online.

They wouldn't see a penny and that frustrates Diane Palmer owner of Abbey Oates Floral Design located on the circle she's been doing internet sales for seven years.

"If the product moves from here, and a customer purchases that item I definitely believe we should get the sales tax on this end," says Palmer.

Palmer also, believes...each state should not be allowed to keep one hundred percent of that tax.

"We do need the sales tax in our town as much as we can, just like anybody else does is the way I feel about it," says Palmer.

Financial experts say palmer and other small internet business owners are the one's who are on the worst end of the legislation....

"The big loser are small businesses. The same small businesses we're counting on to create the jobs to pull us out of the recession."

During the recession many small businesses want to keep people employed and it takes away from production.

Even though products are stacked to the ceiling here at Jeffers incorporated I spoke to the owner by phone, and she tells me this internet sales tax could get even more complicated."

"Different states have different ways of how they charge you taxes, there's an estimated seventy five hundred different tax jurisdictions with in the United States," says Ruth Jeffers.

Other retail owners who don't do business online say bring the tax on.

"I would like to think that all the brick and mortar type businesses in this area would see an increase in their sales coming back because what would be the purpose of buying online, for it if you are still going to pay the same amount for it here in town.

An issue that could affect all shoppers that’s getting a lot of attention on Capital Hill.

The state of Florida is already implementing a state sales tax whenever times are purchased through their state online.

However, they are trusting consumers to use the honor system when it comes to paying the extra six percent.

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  • by Charles Location: Jackson Wyoming on Jul 20, 2012 at 04:45 PM
    I sell about $1,000,000 of product each year, almost all of which is mailed out of Wyoming, where my entire business is located. The proposed tax would impose a huge administrative burden on my company, Now I file a monthly report with the State of Wyoming for the few sales that I ship to Wyoming addresses. Under the act I would need to file with almost 50 other states. I would not object to a sales tax on all my sales at some reasonable percent (say, 6%) if I could pay the same percent on all my sales to one tax collector (probably some federal agency). Then the taxes could be apportioned among the various states in some equitable manner (perhaps in proportion to the sales taxes collected by those states on other sales in the previous year). This would be administratively simpler for everyone, and the states might end up netting more in the end because of reduced administrative expense incurred by them.
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