Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

In the press there is much about Internet taxes with some states looking for revenue from online businesses.  Internet taxes come in two forms:  access taxes and online sales tax.  Online businesses think that Internet taxes will ruin their businesses because they will subject sellers to compliance burdens, on top of the other Internet fears that keep consumers from shopping online such as privacy.

In 1998, Congress adopted a moratorium on Internet taxes, which expires in October 2007. The U.S. Supreme Court has held that states may not require out-of-state sellers with no physical presence in the state to collect sales tax on purchases made by residents of that state.