They're after a consistent regulatory tax bases, not one for NY and
another for CA. At the time of exemptions, it was deemed too imposing
for an online merchant to bear an onus of recording and imposing every
state's tax vagaries. "Brick and Mortar" merchants, with a specific
state presence and business infrastructure, were the exceptions. With
nearly a decade since past and the economy compounded and presently in
Hell's Handbasket, however, the writing is on the wall. Amazon is
trying to save itself from the surrounding morass of state issues by
now appealing to decidedly better interests by supporting a higher law
of the land, at the federal level, for a governing tax guideline
applicable and encompassing to all states. It may not be happening
until, according to how political agendas are rated, 2014, and
ramifications from such as EBAY remain as yet partial and antagonistic
uncertainties.
I could see it being crafted in a manner similar to the apportioned
registration of fleet vehicles or like the way the International Fuel
Tax Agreement is written and administered, with registration/tax
certification being the responsibility of the tax-liable entity in the
state of its domicile and the state distributing proceeds to sister
states into which sales are made. That would keep the feds' fingers out
of the pie, which is desirable to some people, and bring more certainty
to consumers regarding the applicable rate for a given incident of
taxation. Naturally, obviously, there'd be the burden of record keeping
for internet merchants and the risk of administrative and, perhaps,
criminal prosecution for failing to comply but if you go into business,
you go into business, not some past time you do out of boredom.
The eBay (and, probably, Amazon) individuals who list and sell things
once in awhile and aren't in the concerted effort to make a living
selling ought to be taken out of the taxation model, in my opinion, and
treated as persons making isolated or occasional sales not subject to
tax collection responsibilities.
Next on the horizon, the native American tribe(s) who get the idea to go
into the server hosting business on designated reservations and offer
customers a haven from the imposition of sales tax collection.
LNC
