Sales and Use Tax: What you Need to Know Now
States, cites, and counties are losing revenue due to the increased sales done over the internet. This is because consumers and businesses buy goods from other states, having them delivered to their home state and therefore aren’t charged any tax. Some of these items like bed sheets, books, and dog food would garner tax revenue if they had been bought at a brick and mortar store locally.
Recent legislation by the states of Vermont, Louisiana, Colorado, Washington, and Pennsylvania aims to make up for this lost revenue. Consumers of these states are obligated to report their out-of-state purchases (that would be taxable in their own state) on their state tax forms. Sellers are obligated to inform consumers in the above states of this legislation.
For more details on the new legislation, please consult