The Washington Times-Herald

Our Perspective

December 22, 2011

Tangled taxation

(Continued)

New Castle —

States also are looking for ways to cooperate with each other when it comes to Internet sales tax collections. A key factor is the difficulty in tracking many of these transactions. Much of this effort appears to be based on the honor system, which isn’t the best way to assure fair taxation.

Another sticking point is the fact each state has its own sales tax rules. For instance, many consumer items, especially food and clothing, are exempt from Pennsylvania’s 6 percent sales tax. And in some parts of the state, municipalities add another 1 percent to the sales tax.

From a business perspective, it would be a logistical nightmare to keep track of all state sales tax rules, along with the locations of all customers. We think any effort to promote revenue fairness must address Internet sales, but Washington and state governments need to negotiate a system that will tax this commerce without killing it.

New Castle News

New Castle, Pa.

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