Some E-tailers must begin collecting Sales Tax

[David Farber <farber () tmail com>]

-----Original Message-----
From: David Geerinck <dgeerinck () att net>
To: dave () farber net
Subject: Some E-tailers must begin collecting Sales Tax
Date: Sat, 08 Feb 2003 10:02:17 -0500

Dave,

FYI for you and IP if appropriate.

IMHO, it would seem to me to be a very unfair burden to those firms 
targeted by this legal action.  In addition to the cost burden, there 
will surely be a revenue impact - I know it will change where I choose 
to shop.  I wonder if any of the firms targeted were simple direct mail 
catalog retailers?

David Geerinck

----------------------------------------------------------
from CNET at http://news.com.com/2100-1017-983636.html?tag=fd_nbs_ebiz

Several large retailers this week began collecting sales tax on Internet 
purchases.
The move arose from an agreement among about 38 states and the District 
of Columbia that went into effect this week. The deal was struck last 
fall after states complained that they've been losing billions of 
dollars in tax revenue as online sales rise.

<snip>

Those involved would not say which retailers agreed to the deal, but 
retailers including Toys "R" Us, Wal-Mart and Target recently posted new 
policies on sales taxes.

<snip>

Amazon spokesman Bill Curry said complying with the new plan is a 
challenge. "It's incredibly difficult and incredibly expensive," he 
said. For example, Amazon is grappling with how to deal with customers 
in Colorado zip code 80212, where right now the tax schemes range from 
4.3 percent to 8 percent depending on where the person lives. "We're 
trying to do our best," Curry said. "We're not going to overcharge 
customers."

<snip>
-- Dave

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