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Senior Advisor
Posts: 3,228
Registered: ‎04-30-2010
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Are You Ready For Internet Sales And Use Tax?

Rumblings are being heard of a reintroduction of proposals to enable states to impose use and sales taxes on entities that do not have "nexus" or a location in the state.  That means if you live in Iowa and order from a catalog in Virginia that has no Iowa presence, you pay no Iowa tax.  The proposed changes to the commerce laws would let Iowa tax that sale.

 

Would that make much difference to you?  Do you order a lot online?  Would Amazon have to start deciding your tax?

 

In some areas, local governments can impose a local sales tax.  That may be defined by township or other small or obscure division which would be challenging for out-of-towners to tax accurately.  (I received a tax rebate from a company that was taxing me without authority.)

 

https://www.calt.iastate.edu/taxplace/internet-sales-and-use-tax-far-away

 

Would your state or locality like to add non-nexus sales taxes?  How would that affect your farming operation?