When states need to raise money, one of their favorite ways to do so is to tax out-of-state sellers; this is exactly the position that Oklahoma Governor Fallin and the state legislature found themselves in.
The state’s teachers, who were ranked 49th in the county for lowest pay, went on strike for better pay and more spending on education overall. The problem was there was no money in the budget, but the politicians passed a $457 million revenue bill that included an “Internet” tax that allowed the teacher’s to get a very well deserved average pay raise of 16 percent, moving them to 29th in the nation from 49th.
The hype surrounding the tax shows Amazon, eBay, Etsy and other marketplace facilitators are the intended targets. Since they would take the brunt of having to collect the tax.
What is the Impact?
About Michael Fleming
Mike is the founder of Michael J Fleming & Associates dba Sales Tax and More. Prior to beginning this new venture, Mike spent the better part of a decade with Peisner Johnson, an accounting firm that is focused entirely on solving state and local tax issues.