AccurateTax
  • Call Us 866-400-2444
  • Sales Tax Software
  • Calculator
  • Resources
  • Free Trial

Is Destination-Based Sales Tax the Way of the Future?

Published March 19, 2009
Is Destination-Based Sales Tax the Way of the Future?destination based sales tax

In 2008, Washington state joined the ranks of those states that are moving to the Destination-based sales tax model. This was pretty well advertised in Washington circles and many online storeowners in Washington state showed the requisite amount of concern over being able to handle this newly created issue.

While storeowners in the other 49 states seemed to breathe a collective sigh of relief at not having a physical presence in Washington state the fact is that Washington is not the only state that currently has rules that apply to destination-based sales tax collection.

Florida, Texas, California and New York all have varying degrees of rules that require storeowners that transact business with customers in these respective states to collect and report sales tax based on where the products that are sold are ultimately delivered.

Obviously, there are two schools of thought on these newly created sales tax burdens – 1) storeowners are playing a “come and get me” game hoping that states don’t actually have the time or money to track down sales that are made in their states and 2) the “I don’t care what the tax rules are I just want to be compliant” crowd. No matter which crowd you hang your hat in, one thing is for sure in a down economy, the money reservoirs that states used to be able to find from in-state vendors is drying up. Here in Florida, we’re dealing with huge budget deficits for our public education system and many of the state legislators are reluctant to raise any taxes locally, but at the same time seem perfectly fine with collecting taxes on outside-the-state vendors who ship items to Florida residents. I doubt this is a problem that is unique to Florida these days and am sure other states are reviewing their own possibilities in this arena.

Whether the states are successful in seeking sales tax collections from outside vendors will be the true test. Will the federal government insert itself into the mix, knowing that some of these states are facing huge deficits and even potential bankruptcies?

No one can say for sure, but as the axiom says, “may you live in interesting times”, well, I guess 2009 qualifies.

Filed Under: Sales Tax News Tagged With: california sales tax, destination-based, destination-based sales tax, Florida Sales Tax, washington sales tax

Get Updates

Did you find this post useful? Subscribe below to receive AccurateTax news and blog updates in your inbox.

We promise not to spam you!

Ecommerce sales tax is complicated. Let us take the guesswork out of your website's sales tax calculations with our automation services.

Start your free trial today.

AccurateTax Sales Tax Software

AccurateTax believes that sales tax automation should be affordable for all businesses. The laws don't make compliance easy, but our software helps. See how much time you can save by using AccurateTax.

Solutions

  • Sales Tax Software
  • Sales Tax Calculator
  • Filing and Payments
  • Exemption Certificates

Resources

  • My Account
  • Support
  • Sales Tax Information
  • Sales Tax Blog
  • About Our Company

Contact Us

  • 866-400-2444
  • sales@accuratetax.com

Newsletter

  • Facebook
  • Twitter
  • LinkedIn

Disclaimer: Sales tax information is subject to regular change and updates. Information on our website is deemed accurate but not guaranteed. Do not construe this information as professional or legal advice. Your use of this website does not imply a professional relationship.

Copyright © 2022 AccurateTax.com. All Rights Reserved. Privacy Policy