Online Sales Tax - Is an Internet Sales Tax Coming?

I don't know many people that want online sales tax, but apparently a few states in America are moving closer to collecting taxes on internet, phone, and catalog sales.  18 states in the USA just became full or associate members of the Streamlined Sales and Use Tax Agreement's (SSUTA) Governing board.  The move occurred in Chicago on June 30 and July 1, 2005, at a meeting of the Streamlined Sales Tax Project.

Retailers may voluntarily agree to collect taxes for remote sales originating in any of the 12 states that are full members as soon as October 1, 2005, but congressional action is needed before such collection would be mandatory.

Full members (states that have conformed their sales tax laws to the SSUTA) are:

  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Michigan
  • Minnesota
  • Nebraska
  • New Jersey
  • North Carolina
  • Oklahoma
  • South Dakota
  • West Virginia

Associate members (states whose sales tax laws do not comply with the SSUTA) are:

  • Arkansas
  • Ohio
  • North Dakota
  • Tennessee
  • Utah
  • Wyoming

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