Internet sales tax starts next week
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Next Thursday, your online ‘checkout total' will be a little more than you're used to.
Starting October 1st, Amazon and other online stores will start collecting sales tax on all purchases. We knew it was coming and for the National Retail Federation, it's a welcome change.
"Online retailers - who do not collect sales taxes - can sometimes undercut the price a brick and mortar retailer can charge by 10 or more percent just because of this situation," said David French of the National Retail Federation.
Back in January, Governor Rick Snyder signed the "Main Street Fairness Act" into Law. It's designed to level the playing field between online retailers and brick and mortar stores that have to apply the states 6% sales tax. One study estimated that state and local governments missed out on about $23 billion dollars in sales tax revenue last year.
"Every dollar that we don't have - is a dollar that needs to be found through a cut or increases taxes," said David Quam of the National Governors Association
When it comes down to your favorite shopping website, online retailer Amazon supports the Fairness Act, eBay on the other hand, not so much.
"The burden of collecting sales tax from 9,600 tax jurisdictions on interstate transactions - we think - is going to be cumbersome," said eBay President & CEO, John Donahoe.
Sales tax: 6%
New Total: $41.06
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