Current regulations only requires US e-retailers to collect sales tax in states where they have a physical presence, such as their headquarters, stores, offices or warehouses, e-commercefacts.com reports.
Goodlatte’s proposal would have sales taxed according to the tax base of the retailer and the tax rate in the state to which they’re shipping goods.
The bill also outlines specific provisions for foreign sellers and the five NOMAD states (New Hampshire, Oregon, Montana, Alaska, Delaware) that currently don’t charge sales tax.
The Competitive Enterprise Institute (CEI) considers a better option would be to tax at the origin of the sale, according to the base and rate of the seller’s primary place of business to drive downward pressure on taxes and encourage economic growth.
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