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What happened with Online Sales Tax Law?

Silver Spring, MD |

I heard it will be for sellers who have more than a million in sales. What is the current status of the it? Do you know anything about a million in sales net?

Attorney Answers 3

Posted

Sales tax is still assessed on a state by state basis, so generally a company has to have sufficient "minimum contacts" (usually a physical presence) to be required to collect sales tax. Many states impose a "use tax" equivalent to the sales tax that you would have paid if bought within a state, on goods shipped in from out of state. I think the million dollar threshold you are referring to is a California law aimed at internet companies.

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Posted

The bill has yet to pass both houses of Congress. The Senate passed one version, now the House is making their version, and then the two bills will have to be voted on in the other chamber and/or "reconciled." Here's a recent article: http://www.reuters.com/article/2013/09/17/net-us-usa-tax-online-idUSBRE98G11M20130917

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There are very few days left in this year's legislative session so I doubt whether anything will happen this year regarding the Marketplace Fairness Act. In addition, I had read that Speaker Boehner has come out against the bill. Unless his concerns can be assuaged, the bill will not ever reach the floor for a vote.

The answer to this question does not establish an attorney-client relationship. Moreover, this attorney is licensed to practiced law ONLY in the State of California. Answers to questions from users in other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state to address their specific tax issue.

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