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Internet Taxation May Be Imminent

fritz_269 Re:How smart of slashdotters? (859 comments)

Not true. From this site

The tax exemption for remote businesses arises from two U.S. Supreme Court rulings (National Bellas Hess, Inc. v. Dept of Revenue of Illinois in 1967 and,
Quill Corp. v. North Dakota in 1992), which concluded that states and cities cannot compel out-of-state companies to collect sales tax. To do so would amount to an unconstitutional interference with interstate commerce. Only those firms that have a physical presence, or nexus, within the state are required to collect sales taxes.

The Court, however, noted that Congress has the power to change this policy. It could enact legislation authorizing states to require remote businesses to collect and remit sales tax.
Once the states "simplify" their tax codes, there is no impediment for Congress to make a new law allowing or requiring interstate sales taxation. In fact, as representatives of the ,I>states, your senators might be pretty encouraged to do just that.

more than 11 years ago

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