Senate May End Tax-Free Online Shopping, Lower Costs With A Same-Day Courier
Wednesday, April 24, 2013 at 1:21PM 
Online shopping is growing at a very fast pace. From mobile phones to ipads, people have become more comfortable with shopping online in the recent years. There are a number of issues that have risen regarding online business and one of those is online sales tax.
Currently, states collect sales taxes only if the e-retailer has a physical store within that particular state. However, based on the beginning debate regarding the issue, this could very well change. Yahoo News reported an online sales tax debate has started this week, after the Senate passed a test vote yesterday. The Senate passed the test bill by a wide margin of 74 to 20. With this level of support continuing, the real bill could actually pass as early as this week.
Instead of online sales being tax-free for online retailers and having an advantage over brick-and-mortar stores, supporters feel it will level the playing field. "I believe it is important to level the playing field for all retailers," said Senator Mike Enzi, Republican of Wyoming, who sponsored the bill. "We should not be subsidizing some taxpayers at the expense of others." It will generate lost revenue on the state level. Also, President Obama supports the bill as well.
Opposers of the bill feel it will impose complicated regulations on retailers. EBay is one of them. To rally opposition to the bill, EBay president and CEO stated, "I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea. Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business." Others in opposition are Senators representing states that have no sales tax.
EBay wasn't the the only online giant mentioned in the report. Amazon also weighed in and is in favor of the bill. "Amazon.com has long supported a simplified nationwide approach that is evenhandedly applied and applicable to all but the smallest volume sellers," Paul Misener, Amazon's vice president of global public policy wrote in a letter to senators. The bill will ultimately bring more revenue to the states in which the shopper lives in. Businesses that make less than $1 million per year will be exempt for the bill.
Whether the bill to end online tax-free shopping passes or not, e-retailers will need to continue to seek for ways to manage their costs. One way is using same-day delivery. Same-day courier services like A-1 Express are a viable option keep their shipping costs down, in the event online sales taxes do increase. This Dallas courier can perform same-day deliveries at a lower cost because of route optimization and transportation expertise. A-1 Express can create a courier logistics solution specific for any online retailer's same-day delivery needs.
Reference: 4.22.13., YahooNews, Stephen Ohlemacher, Senate bill jeopardizes tax-free online shopping
Reader Comments (1)
Tax free shopping, I think it is not possible because you need to paid the money to the govt thats why you can increased the material price and less in tax free.