Quote:
Originally Posted by Mike P
I've spent thousands of dollars on online sales with websites outside of whatever state I happened to be living in, and I've never paid a dime of sales tax. What kind of online retailer is going to try to keep up with collecting and submitting sales tax to the 40-odd states that have a sales tax? 
Now, Massachusetts could try to collect sales tax on the millions of online purchases made every year by hundreds of thousands of Massachusetts residents. The operative word there is "try". The bottom line is that they'd only succeed on items that you would somehow have to regisiter.
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Thats incorrect Mike, many retailers charge tax on internet purchases. Some sites charge tax on local purchases. It can be done, but it would be hard to do 100%.
As far as waht retailer will be able to do that with 40+ states? Think Paypal. They provide credit card processing for thousands of retailers. Another company will seize the tax reporting/paying process and charge retailers .20 per transaction.