The potential passage of the Marketplace Fairness Act would require that online retailers meet certain threshold criteria to collect sales tax on all online purchases.
Currently, state and local sales taxes apply to online sales, but Internet retailers don’t have to charge that tax if they don’t have a physical presence in a state, leaving the onus for paying the taxes on the buyers. Consumers are supposed to track out-of-state purchases and cut the state a check for an amount equivalent to the unpaid tax. Of course, very few individuals pay the tax and most are not even aware of their obligation. The result is millions of dollars of lost tax ...
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