Looks like my story today on Internet sales taxes has been widely read. This just came to our e-mail inbox and will soon appear in our Letters to the Editor section:
To the editor,
South Dakota lawmakers pushing for an Internet sales tax fail to recognize how such a tax would devastate the smallest online retailers in the state and across the country.
Many large online retailers in South Dakota already collect and remit sales taxes because of their vast “brick and click” networks that allow consumers to purchase online and pick up or return in-store. In fact, 15 of the Top 20 Internet retailers collect taxes in nearly every state.
An Internet sales tax would require all online retailers to comply with thousands of state and local tax jurisdictions. That means treating the smallest retailers – who maybe have a part-time accountant and tax advisor – the same as multi-billion dollar mega-retail giants with thousands of employees and entire tax and accounting departments.
In a tough economy, we should empower and protect small businesses. Instead, an Internet sales tax would disproportionately place costly and complex administrative burdens on the smallest online retailers.
Vice President and Deputy General Counsel, Government Relations