Accounting News

Monday, August 1, 2011
Bill Introduced to Collect Online Sales Tax

Senator Dick Durbin of Illinois introduced the Main Street Fairness Act on Friday. The bill is aimed at evening the advantage that online retailers have over their brick and mortar counterparts over sales taxes. It would give authority to states to require retailers to collect the sales taxes. Online retailers have be exempted from collecting local and state sales taxes from a 1992 Supreme Court decision. Under the ruling, retailers must only collect taxes where they have a physical location. Individuals are required to report online purchases and pay the appropriate sales tax but very few choose to do so.