Sales Tax on Remote Sales

Each state with a sales tax has its own rules for remote sellers. A report from the Government Accountability Office estimated 2021 nationwide remote sales tax collections by the states to be about $30 billion. Businesses reported that they incurred software costs to expand their multistate tax collection capabilities, audit and assessment costs associated with increased tax jurisdiction exposure, and costs to stay current with legal requirements in multiple jurisdictions. The GAO recommends that Congress consider working with states to establish nationwide parameters for state taxation of remote sales. #IdeaoftheDay