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Internet sales tax bill being voted on this week

A bill has been introduced in the Senate that proposes online retailers collect sales tax from all customers. This tax would even apply to states that don’t have a sales tax. It is similar to the bill that was voted on in February, but has been altered so it can be pushed through the voting process more quickly – with a vote being taken as soon as this week.

While the legislation wouldn’t apply to brick-and-mortar stores, eCommerce retailers will definitely be affected.  Larger corporations such as Walmart and Amazon, which are backing the bill can absorb the costs, but smaller eCommerce retailers could take a pricey hit. A steeper tax fee could discourage online shoppers and possibly push sales overseas to avoid the tax. EBay president John Donahoe sent out a mass email yesterday informing sellers on the website about the bill and urging them to protest. Read more about the bill and its possible effects on eCommerce here.



Ripen Services:

Can your checkout system accommodate the possible switch?  Ripen eCommerce analytics and custom development solutions can optimize your site’s payment system and maximize your potential profit.