Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (88427)	6/6/2003 3:17:40 PM
From: Frederick Langford	Respond to of 208838

Hi Marshie, Here's more internet tax stuff from your sunny state of California: California Considers Internet Sales Tax State may join multistate effort By Jim Wasserman ASSOCIATED PRESS June 5, 2003 SACRAMENTO – California, one of the last holdouts against a multistate nationwide campaign to collect sales taxes from online shoppers, would finally join the effort under a bill passed yesterday by the state Senate. The Senate voted 25-13 to have California join a drive to simplify sales tax collection systems nationally, paving the way for widespread tax collection in the fastest-growing sector of American shopping. The author of the bill, Sen. Debra Bowen, D-Marina Del Rey, said it will put California "at the table" of a national discussion, but not immediately change a 58-county sales tax system ranging from 7.25 percent to 8.5 percent. Bowen criticized California for three years of "continuing to sit on the sidelines" while other states launched a process to eventually tap billions of dollars in new revenue. California, New York and Massachusetts, home to major Internet and technology business sectors, had been among the chief holdouts to formally joining an effort known as the Streamlined Sales Tax Project. Massachusetts and New York recently joined the effort. Under the bill, which goes to the Assembly for consideration, California would join a major debate over taxing online shopping nationally. "We've really built up some momentum this year," said R. Bruce Johnson, a Utah state tax commissioner and co-chairman of the national movement. "If we can get California's participation, there would just be literally a handful of states that aren't participating." Bowen calls the widespread custom of no-tax online sales unfair to governments struggling to pay for public services while sales taxes go uncollected. She also cites the competitive disadvantage borne by traditional merchants obligated to collect sales taxes. "It's about tax fairness, because people should be taxed on what they buy, not on how they buy it," she said. Estimates vary widely over government losses from uncollected sales taxes from Internet shopping. A University of Tennessee study put it as high as $45 billion a year by 2006, and the New York-based Direct Marketing Association, which represents catalog and online merchants, puts 2006 government losses at $3.2 billion. One state study estimates California's losses at more than $1 billion yearly. The streamlined sales-tax states are drawing up a simpler, uniform system to overcome a U.S. Supreme Court ruling that bars states from forcing online retailers in other states to collect their sales taxes. A companion bill passed by the state Senate last month would also make online retailers with physical stores in California collect sales taxes from state residents. Backers say that bill would bring $13.8 million to the state every year and $6.2 million more for local governments. Fred