Dateline July 2018: Las Vegas.
Item 1: The United States Supreme Court says states can charge internet
marketers sales
tax on goods and services. This ruling creates a massive problem for
interstate online
marketers as there are over 70,000 different governmental entities allowed by
state and
local laws to collect sales taxes.
The specific problem is what is the sales tax rate, to whom do you pay it and
when do you
pay it. This ruling benefits states in generating revenue, the very big online
marketers
who have the resources to deal with the problem and it hurts small online
business marketers,
so much so, they will be hard pressed to continure in business if they want to
continue to
sell products and services direct to consumers across state and local
boundaries.
The simple solution for small online businesses is to sell their products
wholesale to
local state based distributors and let them sell locally. To be legal, all
small online
businesses need to do is make sure they have a copy of the local distributors
resale
permit and you are good to go.
