Online Sales Tax And Internet Marketers
By now you have probably heard the news that internet sales may soon be subject to sales tax, something that will complicate our sales pages . The subject of online sales tax and internet marketers has been a hot topic for quite some time, but now there are bills moving through the US Legislature, and it seems the time has come to take the situation seriously.
Katy Bachman’s recent article on AdWeek reported, “The Marketplace Fairness Act would allow states to collect sales taxes from online retailers, like Amazon and eBay. Currently, states can only collect taxes from retailers that have a physical presence in their state. Small businesses that make less than $1 million would be exempt from the bill.”
Did you notice the last line in that paragraph? Let me repeat it, “Small businesses that make less than $1 million would be exempt from the bill.”
That should bring a collective sigh of relief from most solo entrepreneurs creating information products and selling them online. I don’t have all the details regarding the online sales tax exemptions, but my purpose today is to encourage you to check it our for your own state of residence so that you have the information you need to build your information marketing business properly.
Bachman goes on to say, “An Internet sales tax has been kicking around for a few years, but now that online shopping has grown into a $226 billion a year business, lawmakers finally took the plunge. The bill drew bipartisan support in the Senate and among traditional retail businesses looking to level the playing field with the growing online marketplace. Online retailers like Amazon supported the bill, while eBay and states that don’t have sales taxes opposed it.”
Stay tuned for further legislative adventures on this issue.