Posted June 6, 2013 12:11 pm by with 1 comment

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The bill that is making its way through Washington DC that would require Internet companies to collect sales tax like brick and mortars businesses do is not likely to get through the House of Representatives according to Congressman Bob Goodlatte (R-Va).

Here is the report from WSLS

WSLS 10 NBC in Roanoke/Lynchburg Va

This is important to Internet retailers but it is not likely that it is simply going away any time soon. Representative Goodlatte’s statement about Internet retailers being treated fairly is likely to stir some resentment from the brick and mortar community since they feel like they are the ones getting screwed with the current state of affairs regarding taxation.

It’s a difficult situation since many states feel they are losing out on tax revenue from Internet purchases. The tax free Internet is almost an expectation by many and making a change at this point in the game is causing real consternation for business people and consumers alike.

So how do feel? Should Internet purchase be taxed like a brick and mortar sale? Is it unfair that online businesses don’t have to pay these taxes while more traditional ones do? As a consumer would you want to pay more taxes (duh!)?

  • Ronald G. Nixon

    As usual our government is making this way too complicated. (This is what happens when we elect lawyers.)


    1. Eliminate all Internet Sales and Use taxes.

    2. Impose a Processing Fee (PFE) on all Internet sales.

    3. Collect PFE at time of sale and put in a holding account (for transfer later) or transfer money immediately to a designated central (Federal) computer system.

    4. Disburse money collected to states based on an agreed upon formula.


    1. Once collected PFE cannot be refunded. (It is a Processing Fee not a Tax. NO EXCEPTIONS!)

    2. Amazon, eBay and others collect PFE for ALL of their affiliates.

    3. States not wanting their share can refuse it.

    4. States accepting PFE create their own systems for disbursing their money to counties, parishes, cities and towns.

    5. Big companies cannot be allowed to avoid PFE collection by routing income overseas or figuring out ways to avoid collecting PFE on their Internet sales.

    6. Every penny collected (no exceptions for handling, processing fees, etc.) is subject to PFE.

    Start with the big players and fine tune the process before going after the little guys.

    We have the technology to collect money in a way that is fair to everyone without creating another paperwork and compliance nightmare.

    “Assuming” PFE isn’t spent faster than it is collected, the PFE percentage should gradually be lowered as more and more companies begin paying PFE on their Internet sales..

    The above system collects needed revenue from Internet based sales while keeping the process simple and separate from brick and mortar sales.