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New Legislation On E-Tax For Digital Products

by XXXXXXXX
4 replies
A new amendment has been added to the current budget proposal for taxing digital products.
Click the link below.

The Tax-Free Internet Shopping Era May Be Over | Daily Ticker - Yahoo! Finance

This will hurt all of us.

X
#digital #etax #legislation #products
  • Profile picture of the author OnlineStoreHelp
    Actually the "Marketplace Fairness Act of 2013" is really just a push by big business to hurt small business and increase the tax roles of states that are not good at managing their budgets. Smart small businesses know it won't stop people from buying online so they will still see sales siphoned off from Brick and Mortar. All it does is give the advantage back to the big box retailers (best buy, Walmart, etc).

    As for "e-goods" and digital goods, that is all done at the state level already. Not all states require sales tax on downloadable goods but many do.
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  • Profile picture of the author CyberAlien
    Well it depends on what actually gets passed into law because some businesses already do very similar to this

    For example, in Texas if you're a business selling online services/products to consumers who also live in Texas, you should be charging them tax.
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  • Profile picture of the author Farish
    Have you read the actual bill or see the law on other websites? Did you even read the article you linked, nowhere it discuss digital products? This has to do with commerce done digitally.

    The law basically states if you do over a million dollars in business, states can require you to collect sales tax for items you sell specifically in that that state. This is to close a loop hole that the SCOTUS created related to brick and mortar store sales to people in other states.

    Even then, a million dollars is a generous amount of leeway for smaller one man operations.

    Here is a link to the Bill below. It passed as a non binding bill, just to see how what kind of vote reaction it would get.

    http://www.gpo.gov/fdsys/pkg/BILLS-1...-113s336is.pdf
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