President Donald Trump, Microsoft CEO Satya Nadella and Amazon CEO Jeff Bezos attend a meeting of the American Technology Council in the State Dining Room of the White House June 19, 2017 in Washington, DC.
“Very few taxpayers report it, even when systems are in place to make use tax payments easy,” said Auxier.
As a result, a coalition of 24 states has adopted the Streamlined Sales Tax Agreement, which allows retailers to voluntarily collect taxes.
In practice, it’s easier for online merchants to add the tax at checkout, as opposed to having states pursue residents for levies owed on purchases, Auxier said.
Expect your use-tax holiday to come to an end as online retailers expand their operations into more states.
“I’m not going to look down upon or congratulate anyone, but there’s something to be said about being a good resident and paying the use tax,” said Auxier.
With respect to an “internet tax,” states and localities can’t levy taxes on access to the web.
The Internet Tax Freedom Act, which keeps states from collecting taxes on internet service, became permanent when former President Barack Obama signed a bill that included this provision into law.
Email requests for comment to Amazon and the White House were not immediately returned.