Internet Sales Tax Man is Alive, Still Kicking and Living in NY
Saturday, May 10th, 2008Internet taxes have been fiercely debated since the first ban passed the U.S. Congress in 1998. That moratorium, set to expire November 2007, was extended for several more years at the eleventh hour. But those taxes had one thing in common: All were levied on Internet access or services. Internet sales taxes for goods purchased online were not on the Tax Man’s agenda … until now. Let’s back up a bit. Many groups eye revenues from Internet taxes: Budget-crunched state and local governments, groups speaking for shopping centers or brick-and-mortar retailers who claim tax-free online sellers get unfair competitive advantage … or that e-Commerce ruins storefront merchants who do pay taxes. Traditional telecom services joined the pro-Internet Taxation chorus, as the market demanded more voice-over-IP services, which are free of special regulatory fees that fall to landline customers. Again, that tax battle raged over Internet access or services.