Online Sales Tax Resources

September 9, 2014

pic-paper-taxUnder the current tax law, states and local governments are prohibited from enforcing existing sales and use tax laws on out-of-state sellers. This has resulted in an increasingly complex sales tax regime where brick-and-mortar retailers collect sales and use taxes from customers who make purchases in their stores, while many online and catalog retailers do not collect the same taxes, however some still do.

There has been a great deal of back-and-forth on this issue with brick-and-mortar retailers pointing to issues of competitive fairness and online sellers pointing to the incomprehensible web of state, county and local sales tax rules which could greatly stymie their business. Because of the broad-based membership of NSBA we have not been able to reach a consensus position on this issue.

In our efforts to help small-business owners navigate the issue and understand how their business may be impacted by state sales taxes—and the small seller exemption—we have linked below to a thoughtful, detailed report from the SBA Office of Advocacy on this very issue.

SBA Office of Advocacy Sales Tax Report

In addition to the Advocacy report, there are a number of independent resources—none of which are formally endorsed by NSBA—that may be of some assistance to you. Click here for one example.