The CRIME Of Charging Sales Tax Across State Lines
No, folks, you CANNOT charge sales tax from your internet business in one state, to the residents of another state. I don’t care if you DO live in Chicago. I don’t care is some ignorant webmaster wannabe says you have to now because some law or another says so.
They are wrong.
NO INTERNET BUSINESS CAN, Nor SHOULD, NOR CAN BE REQUIRED to charge sales tax to ANY RESIDENT of ANY STATE where THAT BUSINESS does not have a PHYSICAL PRESENCE.
It is against the law to do so.
Which Law?
It is Contrary to the Interstate Commerce Clause of the Constitution which PREVENTS any state from collecting sales tax from any resident of any other state! It GUARANTEES free trade between states, and this is part of it, and the Supreme Court has ruled on that, many times.
It is that simple.
It is NO DIFFERENT than if you have a mail order company that sends out catalogs. Online business is the SAME, and your website is considered to be nothing more to the courts than a MAIL ORDER CATALOG SYSTEM. This is also upheld by the Supreme Court.
The fact that the system is online, rather than hand processed by the business MAKES NO DIFFERENCE. It is still just a MAIL ORDER BUSINESS.
It is a CONSTITUTIONAL VIOLATION, and a FEDERAL CRIME if YOUR BUSINESS charges sales tax to anyone outside YOUR state (tourists are IN YOUR STATE when the sale occurs).
In fact, it is TREASON to do so, and a CAPITAL CRIME. That means, if you are found guilty, the death penalty is mandatory.
Not only is this a crime Federally, but it is a crime in EVERY STATE to collect sales tax that is not legally due. Every state stipulates that you can ONLY collect tax on sales that occur IN YOUR STATE (with the customer present), OR from mail order with an in-state customer. It is a crime at the state level for which you can receive the death penalty also. THIS is Tax Fraud, and it is no small thing.
If your webmaster or accountant is telling you otherwise, THEY ARE A CROOK.
If a business is charging you sales tax for a state YOU DO NOT LIVE IN, then THEY ARE A CROOK.
No exceptions. No excuses.
This is a growing trend among dishonest businesses who charge you illegally, so they can skim that extra amount for themselves. You better believe they are NOT paying it to their state. There is NO STATE that requires that, they cannot without getting sued six ways to Sunday.
We are a Constitutional Republic. That means something. It means that the Constitution of the United States of America is the SUPREME law of the land. It holds. No state can just decide that they don’t want to do it that way anymore.
WE DON’T OWE IT!