California To Start Taxing Internet Sales For Residents
Beginning Friday, a new state law will require large out-of-state retailers like Amazon.com to collect sales taxes on purchases that their California customers make on the Internet. That is the bad news! The good news is that California is lowering the online tax rate by a 1-percentage-point drop at the same time. With California starting to charge taxes online like this, is it only a matter of time until more states follow?
Getting the taxes, which consumers typically don’t pay to the state if online merchants don’t charge them, is “a common-sense idea,” said Gov. Jerry Brown, who signed the legislation into law Wednesday. The new tax collection requirement part of budget-related legislation is expected to raise an estimated $317 million a year in new state and local government revenue.
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