Re: Business Questions

         Your friend is asking the same question that countless other 
online sellers are asking!  With literally thousands of taxing 
jurisdictions in the United States, determining the correct sales tax for 
an online sale is very difficult -- which is part of the reason why many 
online retailers who are not required to collect sales taxes simply don't 
do so.  But, in some cases, collecting sales taxes (and then submitting 
them to the  appropriate taxing authorities, of course) is legally 
mandated.  Many retailers have voluntarily decided to collect the 
taxes.  And various states and Congress are considering changes, especially 
in light of many state and local governments' budget shortfalls.

         An entity called the Streamlined Sales Tax Project represents 
about 35 states in their common mission to address this issue.  See 
http://www.streamlinedsalestax.org/

         And, while dated, some of the articles about Internet taxes on 
GigaLaw.com provide good background about this topic.  See 
http://www.gigalaw.com/articles/taxes.html

         Your friend is wise to recognize that, "I can get a web site up, 
but the legal questions are the tricky ones."  GigaLaw.com offers help on 
many of these legal questions.  See http://www.GigaLaw.com

Doug Isenberg
Attorney at Law
Editor & Publisher, GigaLaw.com (http://www.GigaLaw.com)
Author, "The GigaLaw Guide to Internet Law" (Random House) 
(http://www.GigaLaw.com/guide)


At 05:03 PM 4/7/2003, Blue Tapp wrote:
>Hello All ~
>I have a friend who is wanting to start up an online business selling retail
>merchandise from wholesellers.  He sent me this list of questions and I
>thought I'd send it on to all of you since I am not an expert in this area.
>Any advice is appreciated.
>
>"How is something like sales tax handled from a web site? Do you charge the
>sales tax of the area the web site is based, or do you charge tax according
>to the location of the customer?  How in fact do you determine where to get
>a license? Do you get one from the local govt where you live, or where the
>web host is located?
>
>"As you can see, I am completely new to this, but I want to do it right to
>avoid problems in the long run.  I can get a web site up, but the legal
>questions are the tricky ones.
>
>"BTW, what do you think of PayPal?"
>
>TIA!
>
>
>Blue Tapp Scheffer
>Blue's ArtHouse Graphics & Web Design
>705 North Florissant Road
>Ferguson, MO 63135
>(314) 839-0634
>fax: (314) 839-1557
>www.bluesarthouse.com
>blue(at)bluesarthouse.com
>
>"Time to get a web site!"

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