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Brick-and-mortar businesses collect, at most, two sales taxes. Even if a customer from every single state walks in their door. They can engage one local account
by dangrossman 14y ago
Brick-and-mortar businesses collect, at most, two sales taxes. Even if a customer from every single state walks in their door. They can engage one local accountant and pretty much have all their questions about tax classification of different products/services, filing requirements, etc. covered.
Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. That's not really the same.
- dragonwriter 14y ago> Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. More than that, actually; I have no idea where you get 53 from; the relevant entities ("states" as defined in the MFA) include the 50 states, the District of Columbia, 5 named territories, and "any other territory or possession of the United States." But its not just "online retailers", its any remote seller. Including anyone who does online and/or mail and/or phone sales, which includes lots of entities that are also brick and mortar outlets. But only if they choose to sell into each of those jurisdictions: you choose where you will accept orders from, and as a consequence of that choice you choose which tax laws you will deal with. Just like with a brick and mortar business, where you choose where you open outlets, and as a consequence of that choice you choose which tax laws you will deal with. And each of those jurisdictions is required to provide free-of-charge software to calculate tax rates and hold retailers harmless for any errors due to the software.