Illinois’ passage of affiliate nexus legislation has inspired another article on online sales tax, this time by Reuters: “States, business watch for effects of Illinois tax.”
The article offers a succinct background of affiliate nexus legislation and the Streamlined Sales Tax initiative, as well as the effect of affiliate nexus laws on states’ budget shortfalls.
But near the end of the article, we once again see that hoary old argument: Collecting sales tax online is too complicated for online retailers. This time, the partner of an accounting firm is quoted as saying that
asking Amazon to collect taxes would create an administrative nightmare because the company has “thousands and thousands of transactions everyday all over the country.”
Leaving aside the irony of the idea that a company that offers millions of items for sale can’t keep track of the nation’s sales tax rates, we are pleased to offer a solution: TaxCloud.
TaxCloud is a comprehensive sales tax management service that calculates the sales tax due on any purchase for any address in the U.S. It’s easy to set up and integrates with any shopping cart system. TaxCloud monitors the tax codes of every tax jurisdiction in the country and automatically updates any changes, so every TaxCloud merchant is always compliant with state tax laws. It also generates detailed reports and creates state-by-state tax returns for TaxCloud merchants. And best of all, TaxCloud is free to retailers.
Can we please put this argument to rest? Collecting sales tax for every tax jurisdiction in the country is not too difficult, not for Amazon or even the smallest sole-proprietor online shop. TaxCloud can manage the calculation, collection, and remittance of sales tax for any retailer of any size.
And that means that opponents of the Main Street Fairness Act will need to find a new argument. When collecting online sales tax is easy to do, fair to local retailers and online retailers, and helps prevent cuts in vital community services—why wouldn’t everyone support it?