Washington Online Sales Tax Act Now

Online shoppers who are residents of the state of Washington will now have to start paying sales tax on purchases made via the Internet.

Furthermore, Washington joined 18 other states that require some online retailers to collect sales tax. About 1100 eCommerce retailers have agreed to collect state taxes in exchange for not going after them for back taxes.

Last year Washington passed laws requiring online retailers to collect sales tax. The new law changed the tax system of the country based on objective-based sources. Taxes will be collected based on the location of consumers, not the location of the seller.

“This is an important step,” said Mark Johnson, vice president of government affairs for the Washington Retail Association, the Seattle Post-Intelligencer. “This is a fundamental constants our tax structure.”

Bricks-and-mortar store supports online sales tax, saying it allows for a more fair competition in e-commerce.

Most small businesses do not support the legislation of the new tax. They infuse new software to identify 350 counties Washington taxation. They are also worried about being a national law, because they are required to sift through thousands of files the tax code and return throughout the year for each code.