The State of the Internet Sales Tax

Companies like online retailer Amazon.com, iTunes service provider Apple and software maker Microsoft have been fighting Internet taxes for years. Back in 1992, the Supreme Court ruled in Quill vs. North Dakota that states can't make companies with no physical presence in their states to collect those states' sales taxes. That means that Amazon.com may only be required to collect sales taxes in states like Washington State, where it has facilities, and not in others. Well, there's an effort under way to change that.

Companies like online retailer Amazon.com, iTunes service provider Apple and software maker Microsoft have been fighting Internet taxes for years. Back in 1992, the Supreme Court ruled in Quill vs. North Dakota that states can’t make companies with no physical presence in their states collect those states’ sales taxes. That means that Amazon.com may only be required to collect sales taxes in states like Washington State, where it has facilities, and not in others. Well, there’s an effort under way to change that.

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