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Sales Tax Fairness in 2013?

Online sales taxing in the U.S. varies from state to state at the present time. The Supreme Court ruling in 1992 requires a physical presence for collecting sales tax so, of course, businesses created separate online entities. Some retail stores such as Walmart and Target started collecting in 2003 for online orders.

State rulings vary. Barnes & Noble is negotiating with New Mexico about sales tax from 1998-2005, while Illinois says the online sales tax violates the Internet Tax Freedom Act. Amazon taxing can depend on the publisher’s tax reporting. Random House charges in every state, but Hachette Digital only charges in 24 states.

Vermont has passed a state tax law that won’t go into effect until 15 other states pass one like it, but businesses doing more than $100,000 annually in Vermont have to notify customers about its use tax. South Carolina expects this of Amazon between now and 2016. Amazon has been fighting state online sales tax, but recently became a federal online sales tax legislation supporter. More cynical observers think this is due to Amazon’s next day delivery scheme about to begin in New York, Los Angeles, Seattle, and suburban Virginia outside Washington D.C. There is a great deal of speculation that the Marketplace Fairness Act, http://thomas.loc.gov/cgi-bin/query/z?c112:S.1832, will be seen again in the 113th Congress in 2013.

States & Online Sales Tax Legislation

No Online Sales Tax of any kind (5) Alaska, Delaware, Montana, New Hampshire, Oregon
Collects Online Sales Tax (8) California, Kansas, Kentucky, New York, North Dakota, Pennsylvania, Texas, Washington
Will Collect in 2013 (4) Arizona, Massachusetts, New Jersey, Virginia
Will Collect in 2014 (3) Indiana, Nevada, Tennessee
Will Collect in 2016 (1) South Carolina

Publishers Weekly, briefed by Sally Hawkes

Business Briefs

Merger Update: DOJ has no objections

The U.S. Department of Justice closed its investigation into the proposed merger of Penguin and Random House “without conditions.” With the proposed merger still under review by the Canadian Competition Bureau, the European Commission, and other antitrust authorities, it’s too early yet to start using the new company letterhead.

Daily Book World

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