The End of an Era -- And Your Taxes Are Going Up

The End of an Era -- And Your Taxes Are Going Up

An era is coming to a close. Since the dawn of electronic commerce, the famous Quill case cast a pall over state public finance. We in the business know the story well. If a vendor did not have a physical presence in a state, that vendor could not be forced to collect taxes on sales in the state. Without vendor collection, there is no collection. The pages of State Tax Notes are replete with the history...

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The bad news for the raconteurs is that it is all coming to an end. The end is good of course. The sales tax is supposed to fall on all final consumption. Not taxing remote sales only creates market distortions. Moreover, in 2013 it is absurd to think that requiring a remote vendor to collect sales tax is a burden on interstate commerce...

The Marketplace Fairness Act of 2013 will allow the states to require remote vendors to collect sales tax. The measure will pass. Conservatives, particularly those in red states heavily dependent on sales taxes, like the idea. Liberals, well, liberals always liked the idea...

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View David Brunori's opinion in its entirety on the taxanalysts® Blog.

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