States continue to find ways to improve sales tax collection from online sales. They would like to see Congress help, but in the meantime, they find other ways. In 2010, Colorado enacted a law to require vendors with over $100,000 of sales to Colorado customers to notify the customers of possible use tax responsibilities. In addition for any customer with over $500 of sales in the year, the remote vendor also had to issue an annual summary statement to the customer, and a report to the state of all customer purchase totals. When first challenged, an injunction was issued to not enforce the law. That was recently found improper.
Utah and Missouri have taken more recent actions to address varying aspects of the sales tax colletion issue. I have more in a short article in the 9/12/13 AICPA Tax Insider - Still seeking sales and use taxes. Please take a look.
What do you think states should do to improve sales and use tax collections?
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