Tuesday, December 17, 2013

Level the Retail Playing Field


When Governor Kasich vetoed the Ohio internet sales tax this past June, part of the rationale included, This item attempts to mandatorily apply the collection of Ohio sales and use tax to transactions between out-of-state internet retailers and Ohio residents. Similar items enacted in other states have resulted in extensive litigation 

Since that veto, the playing field has been changed by the U. S. Supreme Court's rejection of Amazon's appeal to overturn a New York state law. That law requires internet sales to New York residents to be taxed. In effect the litigation issue has been addressed.

The fallout from this decision could result, if acted on by the state legislature, in a significant increase in Ohio's sales tax receipts. Hard pressed counties would also gain from a change in tax law. Clinton County, for example, receives 1.5 cents from each dollar of sales.

The court's decision will be of increasing importance as internet commerce increases its sales while sales from brick and mortar stores decline, resulting in less tax revenue. Small local businesses are, anfd have been at a disadvantage because of having to add sales taxes to their prices.
Ask Representative Cliff Rosenberger and Senator Peterson for their view on this matter

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