HARRISBURG PA – Western Montgomery County residents who prefer online bargain-hunting instead of trooping from store to store for the best buys, beware. Pennsylvania has begun making your shopping experience a little more expensive, The Pennsylvania Independent online news service reported Wednesday (Sept. 5, 2012).
The state wants to collect tens of millions of sales tax dollars from online shoppers this year. It began the practice last Saturday (Sept. 1), by requiring certain online retailers to collect state sales tax.
The sales tax applies to consumer transactions with online businesses which have a “physical presence” — the legal language for it is “nexus” — in Pennsylvania. The physical presence includes distribution centers, staff or delivery trucks that come into the state, and those who advertise with in-state entities using sales- or clicked-based compensation methods.
The state is determining which companies fall under the guidelines. If it finds a retailer who isn’t collecting the tax and should be, it can issue an assessment, audit lien, or referral to a collection agency or the Office of Attorney General.
The state said it doesn’t have a total of how many businesses have complied so far, but it expects to collect more than $42 million this fiscal year from the 6-percent sales tax.
- Read an article by reporter Melissa Daniels, titled “State steps up sales tax collection” and published Wednesday by The Independent, here.
Photo from The Independent