Few taxpayers know they’re expected to pay sales tax on online purchases, so a new law likely to pass in Congress Monday will help states force retailers to pay up, thus forcing the retailer to charge its customers tax.
The Senate is expected to pass a bill Monday making it easier for states to collect sales taxes for online purchases. Some of the nation’s largest retailers are rejoicing. But small-business owners who make their living selling products on the Internet worry they will be swamped by new requirements from faraway states.
‘It’s a huge burden for a company like ours,’ said Sarah Davis, co-owner of Fashionphile.com, a California-based company that sells high-end pre-owned handbags and purses. ‘We don’t have an accounting department, we’ve got my father-in-law.’