US Governors Push For Internet Taxation

The Washington Post is reporting that a majority of US Governors will urge lawmakers this week to reject the extension of the moratorium on Internet access taxes unless it is tied to the opportunity for states to create a streamlined system to collect online sales tax.

The moratorium, which has been in place since the fledgling days of the Internet to help foster e-commerce growth, is set to expire October 21, 2001.

"If you care about a level playing field for main street retail businesses, and local control of state's governments and schools, extend the moratorium on taxing Internet access only with authorization for the states to streamline and simplify the existing sales tax system," a draft of the letter says.

The issue is quite complex and has challenged lawmakers to rethink the entire concept of transactional taxes in the 21st century.

At issue for the states is the recognition that an estimated $13 billion in uncollected sales tax revenue in the next couple of years will force them to make cuts in spending on education and other vital state services.

At issue for businesses is the fact that there are over 7,500 state and local taxing jurisdictions in the United States, making it onerous and often impossible for small e-tailers to adequately manage the tax collecting and reporting burden.

Sources close to the issue feel that because of time constraints, the moratorium on Internet access Tax will likely be extended.

You may like these other stories...

In the old days, we used to tape down receipts from our travels and submit them to accounts payable. But that was before remote employees who may live in a different city from the home office. And of course, there's all...
In 2011, electrical services and technology provider Parsons Electric in Minneapolis, Minn., decided to take its accounting to the cloud. Monica Ross, the company's director of strategic projects, talked with AWEB about...
Event Date: July 24, 2014, 2 pm ET In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.