| How do states collect taxes on products sold over the internet?

How do states collect taxes on products sold over the internet?

boobtoob asked:


Which statement best describes the current ability of states to collect taxes on products sold over the Internet when the business does not have a store or distribution center in that state?

a) Businesses must collect state sales taxes for the states to which their products are shipped and send those tax receipts to the respective states.

b) Businesses need not collect the state sales taxes, but the consumers are supposed to report the taxes on their income tax returns.

c) Businesses need not collect the state sales taxes and consumers need not pay any taxes on such items.

d) Businesses must pay a flat 5% sales tax into a federal fund that is divided among the states at the end of the year based on business revenues of the respective states.

Related posts:

  1. Will states collect more “use” tax to cover budget shorfalls? bcnu asked: A great number of people are unaware that...
  2. How does everyone feel about the taxes on e-commerce/internet purchases? kyrissanean asked: With the additional states choosing to tax internet...
  3. should I be getting charged sales tax or charging it? dmac_electric asked: Hello I run a business over the internet.I...
  4. I Hope Congress Does NOT Extend the Internet Tax Ban. I Love Regressive Taxes that Affect Low Income People? Duminos asked: Are the Dems like me? Do they hope...
  5. Are you supposed to pay sales tax for buying stuff off ebay? Caiterz asked: My dad got his taxes done yesterday and...

Filed Under Other - Business & Finance |

Tagged With , ,

Comments

One Response to “How do states collect taxes on products sold over the internet?”

  1. zeuz on May 13th, 2009 9:17 pm

    I’d say, choice “a)” looks like a winner.