The Hill: New tax requirements would be burden for e-tailers

By: Sen Kelly Ayotte

The Internet has given anyone with the power of an idea the opportunity to launch a small business that can reach customers from coast to coast – driving growth, creating jobs, and empowering small business owners. Consumers have reaped the benefits of greater choice, lower prices, and more convenience.

But where some see progress, tax collectors see opportunity.

Officials in cash-strapped states across the country are looking for new ways to plug budget holes – and they’re asking Washington for help. They see online businesses as an irresistible source of new tax revenue – and they want to cross state lines to get it.

 Under current Supreme Court precedent, absent a sufficient connection, a state cannot force out-of-state Internet businesses to collect and remit sales taxes.

To illustrate, when a customer in Illinois buys a product from an online vendor based in another state that has no physical presence in Illinois, authorities in Illinois cannot currently compel the out-of-state vendor to send it the Illinois tax on that sale.

Read the complete article from The Hill here and leave a comment on what you think.