Online sales tax

There are some big changes happening in the online taxation, specifically with the online sales tax. California accepted law that tells online retailers to start collecting sales taxes from customers. Some big retailers responded to this by severing ties with etailers that sell through their websites.

The idea of this whole online sales tax activity is to increase online sales tax collection and revenue. The problem with online sales tax is that the online sales tax needs to be paid by the buyers, but getting the buyers to report their purchases and actually to pay their online sales tax is not easy. So, the governments has moved the burden of collecting the online sales tax on to the sellers.

Many people oppose the new online sales tax bill because it is unconstitutional and counterproductive. Many of about 25,000 Amazon affiliates in California, especially larger ones with dozens of employees, are likely to leave the state, some experts say. The affiliates combined paid $152 million in state income taxes last year.