by Jon Kuhl
On Sept. 9, the California legislature approved a deal with Amazon.com in which the online retailer will begin collecting California sales taxes after September of 2012. The deal is expected to bring in millions of dollars of revenue for the state.
In light of the deal, and the continuing momentum for Congress to pass the Main Street Fairness Act, NCSL’s Neal Osten, in this short video, answers some of the most commonly asked questions about the legislation.
If passed, the Main Street Fairness Act will remove the burdens to interstate commerce that were of concern to the Supreme Court in the 1967 Bellas Hess case and the 1992 Quill v. North Dakota case. Through these cases, the Supreme Court acknowledged consumers owe the sales tax when they purchase goods through catalogs or over the Internet, but ruled states cannot force retailers to collect the tax. This legislation will overturn these decisions and authorize states to collect sales taxes on out-of-state sales.
For more information on Main Street Fairness Act, head to NCSL's website.
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