The Internet Sales Tax, also known as The Marketplace Fairness Act (MFA) would require online retailers to collect sales tax from customers in states where the retailer has no substantial physical presence and remit them to each customer’s state. There is an exemption for Small Business’ making less than $1 million/year, and also would only apply to purchases made in states where sales tax is currently being collected.
The MFA has passed the Senate and will soon be debated in the House. There is much concern about this bill and many are worried that internet sales will be significantly reduced and small businesses disproportionately impacted.
Alex Fitzpatrick of Mashable, recently wrote 44% of Shoppers Will Buy Less Online if Internet Sales Tax Passes. He discusses a survey sponsored by Endicia, an electronic postage software company.
To read the entire article go to http://mashable.com/2013/05/14/internet-sales-tax-shopping/