This white paper examines the growth of internet retailing, Amazon’s increasing share of this market, and the rise of free-riding as consumers browse and ask questions in brick-and-mortar stores and then buy online. The paper presents several recommendations for manufacturers, retailers, and policy-makers. … Read More
In what may well be the tipping point in a decade-long fight to level the playing field for local brick-and-mortar businesses, California this week enacted a law requiring Amazon and other large online retailers to collect state sales tax. … Read More
By exempting internet retailers like Amazon.com from collecting sales taxes, lawmakers provide a substantial financial incentive for people to bypass local businesses and shop online instead. … Read More
Doing so would ease budget shortfalls and restore a measure of fairnessfor small businesses, which lack access to these loopholes and end upshouldering a heavier tax burden than their big competitors. Some evidence even suggests that leveling the playing field may help spur entrepreneurialism and job growth.… Read More
Included in the state budget passed this week by the New York legislature is a provision that requires online retailers, including Amazon.com, to collect state and local sales taxes.… Read More
In May, Vermont became the seventeenth state in the nation to close a loophole that major chain retailers are using to evade paying state income taxes. The loophole allows multi-state corporations to shift income made at stores in Vermont to subsidiaries in low- or no-tax states like Delaware and Nevada. Income shifted in this manner, although earned in Vermont, is not subject to the state’s corporate income tax.… Read More
In a decision that may galvanize action in other states, the California Board of Equalization (BOE) has ruled that online bookseller Borders.com must collect state sales tax. Under a 1992 Supreme Court decision, Quill Corp. v. North Dakota, states cannot compel out-of-state companies to collect sales taxes unless the company has a physical presence, or "nexus," in the state.… Read More
Arkansas has enacted a law that clarifies that retailers with stores in the state must collect sales taxes on any online purchases made by state residents. As noted in the story above, under a 1992 Supreme Court decision, Quill Corp. v. North Dakota, states cannot compel out-of-state companies to collect sales taxes unless the company has a physical presence, or "nexus," in the state.… Read More
Efforts to apply sales taxes equally to both bricks-and-mortar and online retailers have made substantial progress since our last update, yet it is likely to be several more years before a level playing field becomes a reality. The Supreme Court has ruled that states cannot compel out-of-state companies, including internet and catalogue retailers, to collect state and local sales taxes. … Read More
