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Major online retailers to collect sales tax
Posted by James Grimmelmann on Friday, February 07 @ 13:25:39 EST Consumers
Wal-Mart, Marshall Fields, Target, Toys R Us and Mervyn's are among major online retailers who will begin collecting sales tax from all customers in a deal with 38 states. The full list of retailers who signed on to the deal remains secret; these are just companies whos sales tax polices have changed this week.

Under the deal, the states will grant the retailers amnesty for not collecting sales taxes in the past. Under current law, sales tax is definitely owed when the buyer and company are located in the same state. By spinning out their online operations as separate subsidiaries, retailers have been claiming that they're not in the same state as their customers. States, acting on their belief that walmart.com should be treated the same as the Wal-Mart up the block, disagree.

Not all states are part of the compact, seven of the remaining twelve charge sales tax. Similarly, the move was officially "voluntary" on the part of retailers. Still, this looks like a significant step towards a uniform sales tax policy for online sales.

The Washington Post has the full story.

 
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