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Feb 28, 2003 : California Considers Retail Net Tax
📅 - Two California lawmakers have introduced bills that could force all Web retailers to collect sales taxes on the state's behalf.
According to a report commissioned by the Institute for State Studies, Internet retailers cost California $1.75 billion in lost sales tax revenue, while all states combined missed out on $13.29 billion. Last year, Internet sales ballooned to $79 billion, or about 3 per cent of all retail sales, according to Forrester Research. With states country facing a collective $50 billion budget gap this year and $70 billion next year, legislators are increasingly considering taxation measures for the Net. A U.S. Supreme Court decision noted that states cannot force businesses to collect their sales taxes unless the company has a physical presence in that state.
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