| Central Penn Business Journal
Will online sales tax law even the playing field?
With Cyber Monday (you know, the online answer to Black Friday) upon us, and a new state Department of Revenue tax law kicking in next year that urges/forces/coaxes/asks consumers to pay their online taxes on their income tax forms, the question is raised: Will it work?
DOR estimates the commonwealth lost $380 million this year in tax revenue that consumers never paid on online goods or that online retailers never collected.
Pennsylvania does have a law on the books already mandating the paying of sales tax from online purchases, but it's not been enforced and, well, people and businesses seem to be in no hurry.
Online retailers fear they will lose their competitive edge if they must charge online taxes. Traditional bricks-and-mortar retailers argue that if they have to charge the tax, so should their online counterparts: After all, fair is fair.
What are your thoughts? Will consumers actually pay the taxes? Will it level the playing field?
Christopher Passante is the editor of the Central Penn Business Journal.