Those of you who shop online probably know, you’re supposed to pay sales tax on your purchases. But let’s face it, few consumers do that. Partly, it’s because consumers don’t know how. It’s not as simple as a brick and mortar purchase, where the tax is automatically added. Online buyers are supposed to figure out the tax on their own and send it to the State Board of Equalization. As a result, millions, perhaps billions of dollars are going uncollected. For a cash-strapped state like California, that’s a lot of lost revenue. Now, California Assemblywoman Nancy Skinner is proposing legislation that would require online retailers to tax internet purchases automatically. But some California Republicans aren’t keen on this idea, arguing that collecting these taxes would have disastrous effects. Why are online purchases taxed differently? Should this be changed? Do you intentionally make purchases online to avoid paying sales tax? Are you willing to change your ways to help out the Golden State?
Guest
Nancy Skinner, California Assemblywoman (D-Berkeley)