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AirTalk

Internet sales tax a web of trouble

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Internet sales tax a web of trouble
It's estimated that California loses more than $1 billion each year from uncollected taxes on internet sales. Currently, many websites exploit their position as out-of-state sellers by leaving it to the customer to calculate the sales tax themselves and send it to the state. Since many consumers are unaware of such rules, the result is lost revenue for California. Should states be able to tax internet sellers? Larry Mantle and a guest examine the issue with listeners.

It's estimated that California loses more than $1 billion each year from uncollected taxes on internet sales. Currently, many websites exploit their position as out-of-state sellers by leaving it to the customer to calculate the sales tax themselves and send it to the state. Since many consumers are unaware of such rules, the result is lost revenue for California. Should states be able to tax internet sellers? Larry Mantle and a guest examine the issue with listeners.

Lenny Goldberg, Executive Director, California Tax Reform Association