Amazon Sales Tax Battle Rages on

The Internet sales tax is coming sooner rather than later. At this point, it comes down to what the Congress decides. California was one of the states that managed to pass the Internet sales tax bill but has put that on hold for a year. Every product that we buy from companies such as Amazon should technically be taxed at the state level. But customers rarely pay those taxes.

eBay has suggested that companies with sales of up to $30 million should be exempt from collecting taxes. Amazon is aiming for exemption for companies with revenue below $500K. Of course, the issue of enforcing Internet sales taxes in states can be quite costly at state levels. It could also be a small business killer if this is not implemented the right way. Amazon has fought off Internet sales tax bills in the past. But if a federal law is passed, Amazon wants few companies to be exempt:

widespread collection no longer would be an unconstitutional burden on interstate commerce, and Congress feasibly can authorize the states to require all but the very smallest volume sellers to collect,

Paul Misener, Amazon’s vice president for global public policy, explained. One way or the other this battle will be settled soon. Let’s hope small affiliates do not get the shaft.