There is a new Internet sales tax you’ll want to discuss with your Internet attorney if you have affiliates or another physical connection with the State of Arkansas. In its attempt to kneecap competitor Amazon.com, Wal-Mart has pushed through a new “fairness” law in Arkansas (where Wal-Mart’s headquarters is located) to require Internet business owners like you to collect Arkansas sales tax if you do a certain amount of business in that state through Arkansas affiliates.
This has nothing to do with fairness and everything to do with an unholy alliance between crony capitalists like Wal-Mart and politicians who want to screw you out of every last dime in order to fund their pet projects. It’s like the typical big city that screws over tourists by padding the hotel bill with 30 or 40 bucks worth of taxes and fees.
Arkansas isn’t the first state to pass one of these so-called “fairness taxes.” Illinois, New York, North Carolina, and Rhode Island have similar Internet sales tax laws. Your Internet attorney and accountant can tell you about the tax requirements for each state.
California and other bankrupt states are considering passing similar legislation. For more information on legal issues like these and how to handle them, get your personal copy of my new book “Internet Laws – How to Protect Your Business Website Without a Lawyer.”
Imagine the paperwork for collecting and remitting sales taxes to 50 states plus every county and city that decides to jump on board and pass similar laws.
If you’re going to be hit with an Internet sales tax imposed on Internet transactions by these greedy states, you might want to follow the lead of Amazon, Overstock, and other major online retailers by simply getting rid of your affiliates in those states.
To your online success!
-Mike the Internet Attorney
P.S. Under a 1992 U.S. Supreme Court decision this Internet sales tax should be an unconstitutional interference with interstate commerce but don’t expect that to matter to those involved.