Internet Tax Ban coming up for renewal....

[sarettah]

Originally posted by Carrie@Oct 16 2003, 05:31 AM
A couple of years ago it would have made a difference, nowadays I don't think it will slow down consumer spending online whatsoever. It'll just suck for the merchants for the added bullshit they'll have to go through.

I think that if they start making merchants online charge the state sales tax for either the merchant resident state or the purchaser's state you will see a slow down. Right now one of the best reasons to buy something online (all things being equal pricewise) is to save the sales tax.

for example, when I am buying memory and stuff, I often buy it from bestbuy.com because they come out with some really good prices now and again. I have a best buy store less than 10 minutes away from me, so why buy online, because I save that 7% sales tax. (although often the price difference is more than made up for with shipping and handling charges)

If prices are the same and both have sales tax in them, then I would probably just run up to the store and grab it. I don't have to risk a credit card being entered on the net, I don't have to wait for delivery of the product, and I get to see the actual product with my own eyeballs.

Another important consideration is "will adult memberships, etc be subject to tax?"

In some states, subscriptions to magazines, newspapers, etc are exempt from sales tax as being "dated material" in other states they are taxable. Same with things labeled as "services", some states impose a tax, some don't. Where do adult site memberships fall into in the various states taxing schemes? Could be a whole big can of worms being opened there....



Last edited by sarettah at Oct 16 2003, 09:25 AM