Internet Sales Tax Bill - KLFY News 10

Internet Sales Tax Possibility Looms

Tom Cox Tom Cox

There's many perks to buying online—free shipping, free delivery and most of the time, no tax. But as the online shopping market continues to grow—so does the legislation. And the "Marketplace Fairness Act" would make online retailers charge customers state sales tax.

"It's going to feel like somewhere between a seven and 10% inflation on the things you buy online and that's just the reality of it," said Tom Cox.  

Cox, knows a thing or two about e-commerce. He runs, a company that pulls in an average of $15 million a year in online sales. Their Lafayette retail shop is just 8% of the company. After following the issue closely, he's not so sure the economy is ready for an online sales tax.

"Do we really want to add 8% inflation—BANG—overnight or in a very short period of time to online buyers? That's going to slow business down, there's no question about that," said Cox.  

But the tax would not affect mom and pop online retailers, unless their business is pulling in at least $1 million a year in revenue. Currently, online retailers are only required to collect sales tax in the states where they have a physical presence or a warehouse. But the proposed law would extend the tax even where they don't operate.

Luckily, Cox's company specializes in customized products, so he's not too worried about a chilling effect on his business.  

"(We sell) Logo golf balls, personalized golf balls, photos on golf balls," said Cox. "That's the kind of stuff you can't get in a store so, to an extent those types of sales would be insulated."


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