tax – Duane Morris TechLaw

October 29, 2013July 18, 2016 by Eric J. Sinrod

Illinois’ “Amazon Tax” Law Ruled Unconstitutional

Should consumers be able to avoid paying state sales tax simply because they make purchases on the Internet?

Some legislators think not, believing that state coffers should not be deprived of sales tax revenue from online purchases. Consequently, they have enacted some laws designed to capture such revenue.

However, according to the Chicago Tribune, a recent law passed in the Land of Lincoln attempting to tax online purchases was just ruled unconstitutional by the Illinois Supreme Court.

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April 30, 2013July 18, 2016 by Eric J. Sinrod

The Death of the Tax-Free Internet?

Last week, by virtue of a 63-30 procedural vote, the Senate moved forward with a bill called the Marketplace Fairness Act, with a final Senate vote set for May 6, according to The Wall Street Journal.

The bill, if it were to become law, would enable states to force online sellers nationally to collect sales tax with respect to their residents’ purchases.

In the past, online sellers were not in favor of the imposition of sales taxes on Internet transactions — indeed, these sellers had a competitive advantage over brick-and-mortar sellers, because purchases from online sellers were cheaper for buyers due to the lack of imposed taxes.

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November 13, 2012July 18, 2016 by Eric J. Sinrod

San Francisco Passes Prop E To Benefit Of Startups

Tax reform can and does happen at the ballot box. Indeed, startup companies in San Francisco should soon feel the benefit of the recent passage of the city’s Proposition E.

Proposition E implements a tax on gross receipts, phasing out San Francisco’s prior payroll tax. This will be very beneficial for startup companies that have paid staff but have yet to earn much revenue.

Furthermore, given that business tax trails only property tax for bringing in dollars to the city of San Francisco, by taxing gross receipts instead of payroll, there will likely be more regularity and less fluctuation in terms of dollars flowing into city coffers.

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