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Business

Sales tax on online shopping coming?

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I read two news this week, which makes me think this is coming. Keep in mind many local governments are upside down in terms of budget and debts, any tax revenue helps. Collecting tax revenue from online merchants in remote places like Seattle (HQ of Amazon) is a convenient choice.

Expedia (Nasdaq: EXPE) tax lawsuit (source: hotel-online): from my reading, basically the dispute is around the basis of tax, we know Expedia sells hotel room at discounted rates, but the local government (Columbus, GA in this case) think it should be the listed price. I am not lawyer but I lean towards the discounted rate.

Amazon may stop doing affiliate business. Quote WSJ Amazon Threatens Cuts Over State Taxes:

The Wall Street Journal reports that Amazon.com (Nasdaq: AMZN) may stop doing business with some of its marketing affiliates over state taxes.