Internet Sales Tax Nears

As reported by Internet Retailer this week, 18 states are trying to win federal support for a sales tax on all Internet purchases. On October 1 they will begin to operate under the Streamlined Sales and Use Tax Agreement (SST).

By design, the SST is set to show federal legislators that a multi-state system of collecting sales tax across state boarders can be a snap.

Significant hurdles remain to be cleared such as states needing to agree on uniform definitions of products to be taxed. Even if uniform definitions are agreed to interpretation of those definitions is yet another challenge.

The 18 states set to participate in the SST are Arkansas, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Tennessee, South Dakota, Utah, West Virginia and Wyoming.

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