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Internet sales tax a reality
August 25, 2004 |
When I first started hearing about an internet tax a few years ago my
first that was, "yeah right, how are they going to collect and enforce
it, and who is going to get all of that money?"
Well, it appears that Michigan has answered some of these questions, as
the state plans to roll out an internet sales tax in September.
The state already has a 6% sales tax, but any purchases made online will
then also be subject to the new internet sales tax.
What is interesting, however, is that the law is voluntary (currently).
That means that online businesses in Michigan do not have to collect the
tax.
The idea behind the tax is to help level the playing field for brick and
mortar businesses trying to compete with their generally less expensive
counterparts online.
What is interesting is the effect this decision will likely have on the
web in months and years to come. You can bet that other US states will
be watching closely to see how much revenue is generated from this
optional tax. I wouldn't be surprised to see more states jump on the
internet tax bandwagon soon, and even make it mandatory rather than
voluntary.
Soon after that, the Federal government will likely get involved because
they will want their cut, then other countries will follow suit. In the
next few years I wouldn't be surprised to see a sales tax across the
board for all online purchases, regardless of where the sales is made or
the purchaser lives.
What Michigan has done is started the ball rolling on something which I
am certain will cause much heated debate in the coming years. |
Rob Sullivan
Head Organic Search Strategist
Search
Engine Positioning by Searchengineposition
Enquiro Full Service Search Engine
Marketing
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