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High Court Stays Out of Internet Sale Tax Battle

High Court Stays Out of Internet Sale Tax Battle

The U.S. Supreme Court this week left it up to states to force online retailers such as Amazon.com to collect sales tax from customers.

It's all part of a furious battle between Internet sellers, millions of buyers, brick-and-mortar stores and states hungry for billions of dollars in extra tax revenue.

Texas already collects taxes from Amazon as part of a 2012 agreement, so R.J. DeSilva at the state comptroller's office says nothing will really change for online shoppers here.

“Under our state tax code a business collects sales tax in Texas if it has a store or office in Texas, or has a distribution center in the state,” DeSilva tells KTRH News.

However, Katie McAuliffe with Americans for Tax Reform says the high court's indecision could have a big impact nationwide.

“I think its unfortunate they've declined to protect tax payers from cross-border taxation,” says McAuliffe.  “We'll have to wait and see what goes on in the House, but I don't think its going anywhere there either.”

The U.S. Senate earlier this year passed the Marketplace Fairness Act, which would allow states to collect sales taxes from retailers who don't have physical presence in their state.

The legislation is meant to streamline the process nationwide, but McAuliffe insists the paperwork alone would headaches for everyone.

“Its overly burdensome for businesses and opens them up to abusive legal proceedings,” she says.

 

 

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