Since the birth of the Internet, online retailers and consumers have guarded the tax-free click. Not having to collect state sales taxes has allowed digital stores to flourish. Shoppers have been able to find what they want in regular stores, only to order the same product online -- tax-free.
Local and state sales taxes “add significantly” to the amount consumers pay for everyday goods, with Tuba City, Arizona, charging 13.725 percent, the most of any municipality, the Tax Foundation reported.
U.S. House Republicans are seeking a way to address the ability of Internet retailers and catalog companies to avoid collecting state sales taxes, a situation brick-and-mortar stores say is unfair to them.