Got back to work today and had this in an email from our accounting company. States are starting to sue internet companies for revenue to replace what they're losing due to the sagging economy. Online travel, events tickets, ebay, Amazon,etc. They want to start taxing all sales not just in the state they're registered, which can only lead to sellers having to file with the IRS as actual businesses. There goes all the casual ebay sellers. Read on...
NLJ: States, Cities Step Up Efforts to Tax Internet Sales
From next week's National Law Journal: Clash Over Taxing 'e-Tailers' Intensifies: States, Cities Stepping Up Legal Efforts to Tax Internet Sales, by Teresa Baldas:
Towns and states eager to collect taxes from booming Internet sales are increasingly turning to litigation — and online retailers are putting up a fight.
In a case that has reached the Georgia Supreme Court, the city of Atlanta is suing 17 online travel companies, including Expedia, Orbitz. and Hotels.com claiming that they owe the city millions of dollars in unpaid hotel and occupancy taxes. Atlanta v. Hotels.com, No. S08G0568 (Ga.).
In Illinois, the city of Chicago is suing eBay and StubHub in an effort to collect an 8% amusement tax from tickets sold online to Chicago sporting and cultural events. Chicago is seeking a court order allowing it to audit the companies and fine them for failing to collect and pay the tax. City of Chicago v. eBay Inc., No. 2008-L-050524 (Cook Co., Ill., Cir. Ct.); City of Chicago v. StubHub Inc., No. 2008-L-050525 (Cook Co., Ill., Cir. Ct.).
In New York, Amazon.-com Inc. and Overstock.com Inc. are suing the state over a new law that requires online retailers to collect sales tax on purchases made by New York residents and remit the tax to the state. Amazon.com v. New York State Dep't of Taxation & Finance, No. 601247-08 (New York Co., N.Y., Sup. Ct.); Overstock.com v. New York Sate Dep't of Taxation & Finance, No. 107581-08 (New York, N.Y., Sup. Ct.).
NLJ: States, Cities Step Up Efforts to Tax Internet Sales
From next week's National Law Journal: Clash Over Taxing 'e-Tailers' Intensifies: States, Cities Stepping Up Legal Efforts to Tax Internet Sales, by Teresa Baldas:
Towns and states eager to collect taxes from booming Internet sales are increasingly turning to litigation — and online retailers are putting up a fight.
In a case that has reached the Georgia Supreme Court, the city of Atlanta is suing 17 online travel companies, including Expedia, Orbitz. and Hotels.com claiming that they owe the city millions of dollars in unpaid hotel and occupancy taxes. Atlanta v. Hotels.com, No. S08G0568 (Ga.).
In Illinois, the city of Chicago is suing eBay and StubHub in an effort to collect an 8% amusement tax from tickets sold online to Chicago sporting and cultural events. Chicago is seeking a court order allowing it to audit the companies and fine them for failing to collect and pay the tax. City of Chicago v. eBay Inc., No. 2008-L-050524 (Cook Co., Ill., Cir. Ct.); City of Chicago v. StubHub Inc., No. 2008-L-050525 (Cook Co., Ill., Cir. Ct.).
In New York, Amazon.-com Inc. and Overstock.com Inc. are suing the state over a new law that requires online retailers to collect sales tax on purchases made by New York residents and remit the tax to the state. Amazon.com v. New York State Dep't of Taxation & Finance, No. 601247-08 (New York Co., N.Y., Sup. Ct.); Overstock.com v. New York Sate Dep't of Taxation & Finance, No. 107581-08 (New York, N.Y., Sup. Ct.).
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