But near the end of this month, a bill, The Main Street Fairness Act, will reach congress. It mandates that all businesses, including online retailers like Amazon.com, collect sales tax for the state in which the customer resides.
Proponents of the bill insist it's just a way to ensure that due sales tax gets paid. You see, when a Californian (or a person in any other sales-tax state) skips out on paying their state sales tax with an Amazon.com purchase, they're expected to declare the purchase, and pay any applicable taxes, on their year-end tax returns. This bill just demands it happens at the point-of-sale.
But Amazon knows the real deal. Most of it's customers aren't paying up their sales tax. And it's this "instant savings" on online purchases that keeps them coming back. Amazon is fighting the legislation.
What do you think? Would you stop shopping online if retailers are forced to start charging sales tax? Or do you shop online for convenience and not for a 7 percent savings? Tell us in the comments!