Why are taxes for many items ordered online not taxed? a.Because Congress passed
ID: 1214451 • Letter: W
Question
Why are taxes for many items ordered online not taxed?
a.Because Congress passed a law prohibiting these taxes
b.Because of a Supreme Court decision
c.Because online firms refuse to collect these taxes and since they are located out of state the state can't do anything about it
d.All online sales are now taxes. Brick and motar firms complained so states now take online sales like they do purchases from stores in the state.
a.Because Congress passed a law prohibiting these taxes
b.Because of a Supreme Court decision
c.Because online firms refuse to collect these taxes and since they are located out of state the state can't do anything about it
d.All online sales are now taxes. Brick and motar firms complained so states now take online sales like they do purchases from stores in the state.
Explanation / Answer
The US Supreme Court has ruled on multiple occasions that a state can force a retailer to collect sales tax only if that retailer has a physical presence in that state. If there's no physical presence in a state, then the state can't require a retailer to pay taxes.
Ans is C
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