Overstock, Amazon Fight Online Sales Tax

From the Heartland Institute:

"Overstock.com has become the second online retailer to mount a legal challenge against a New York law that effectively defines them as state-based merchants, forcing them to collect sales tax on purchases made by consumers who reside in the Empire State.

A new statute passed by the New York legislature April 9 attempts to circumvent a 16-year-old U.S. Supreme Court ruling that prohibits a state from collecting sales tax from any merchant that does not have a "nexus," or physical location, within the state."

Read the full article:
http://www.heartland.org/Article.cfm?artId=23521

Gravette Faces Revenue Shortfall

Officials Say New Tax Collection Method Has Caused Problem

"The city of Gravette has had to make cutbacks in recent months to make up for inaccurate predictions of 2008 finances.

Police no longer patrol. Instead, they park and turn their engines off until they are dispatched.

Any city employee who quits cannot be replaced.

Mayor Bill Howard has to approve all spending, even if it was budgeted.

"If it isn't needed right now, we don't get it," he said.

Still, Howard said the city will probably spend about $30,000 more than it brings in this year. That money will come out of the city's reserve fund."

Read the full article:
http://www.nwaonline.net/articles/2008/07/12/news/071208rzgravettefinances.txt

Destination-based sales tax complicated for businesses

"Collecting sales tax became some 350 times more complex last week for many of the state's retailers.

Washington's new "destination-based" sales tax system replaced its existing "origin-based" system July 1."

Read the full article:
http://wenatcheeworld.com/apps/pbcs.dll/article?AID=/20080707/BIZ/756671147/1001

New sales tax law is trouble, in a nutshell

From the Columbian, serving Clark County, Washington:

"A new state law aimed at simplifying tax collections is causing unintended headaches for small Washington businesses that sell online.

Carolyn and Ray Young, owners of Ridgefield-based Allen Creek Farm, have spent hours trying to comply with the law, which requires them to charge a different sales tax rate depending on which of Washington’s 357 taxing districts they ship to. State computer systems that are supposed to make things easier are riddled with mistakes, Carolyn Young said. The system puts the business at a disadvantage when competing with sellers in other states. And for all the Youngs’ efforts to follow the rules, they expect to owe less than $25 on their sales."

Read the full article:
http://www.columbian.com/business/businessNews/2008/07/07222008_New-sales-tax-law-is-trouble-in-a-nutshell.cfm