The Tax Foundation – Paying Sales Tax on Cyber Monday Purchases?

Ever wonder why some items are taxed and others aren’t when shopping online? The Tax Policy Blog has the latest information for you.

Today is Cyber Monday, when employees return to work from the long holiday and will online shop to the tune of perhaps $1 billion. For some online purchases, consumers will have sales tax added to their bill but for most purchases it will not be. Why?

Mostly it’s about the limit of state powers. Without some restraint by the courts or the federal government, states have an incentive impose their full tax on every transaction connected with it in any way. If I buy something from another state, which is fulfilled by a warehouse in yet another state, with the delivery truck driving through 6 states, what state gets to impose its sales tax on the sale?

via The Tax Foundation – Paying Sales Tax on Cyber Monday Purchases?

While you’re at it, view these safety tips for a successful Cyber Monday and year-round shopping experience from TechieBytes.

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