Wednesday, December 28, 2005

uh oh

States Taking Lead in Online Sales Tax Collection
By Devin Comiskey
December 27, 2005
Since the dawn of the e-commerce era, consumers have enjoyed virtually tax-free shopping online. If you live in Arizona and purchase an item from Ohio, you usually pay no tax. However, the lack of any form of sales tax for Internet shoppers has led some states to cry foul, as tens of billions in tax revenue dollars has disappeared. Now, states are taking matters into their own hands as progress on a federally mandated Internet tax bill appears to be stalled. .........

...............Connecticut Joins the Fray
On November 15, 2005, several thousand Connecticut residents reportedly received a surprise in their mailboxes. The state's Department of Revenue Services began sending out letters to those suspected of purchasing goods over the Internet without paying the proper state use tax.
In part, the letter says, "Dear Taxpayer, A review of our records indicates that you have not reported any purchases subject to Connecticut use tax. This may have been an oversight, or you may not have been aware of the...use tax. Connecticut General Statutes, Section 12-411, imposes a use tax on any person who purchases taxable items for use in Connecticut where the seller has not charged the appropriate sales tax...Connecticut residents are ....................

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