Online Sales May Soon Be Taxed - ABC 33/40 - Birmingham News, Weather, Sports

Online Sales May Soon Be Taxed

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Sales tax dollars fund police and fire departments to keep your family safe, even paying for street repairs. But some cities are complaining about losing money to online sales. Now we are learning the federal government may soon require taxation for your online buys.

Debbie Vinyard runs Happy Firsts, an online store, from Sapulpa, Oklahoma. She sells clothing that features happy time themes and inspirational messages.

She sells to local customers, shops and boutiques.  As the law requires she currently charges sales tax to her Oklahoma customers. But she is building a national fan base with items like t-shirts to benefit the victims of the Boston Marathon bombing. 

She expects to sell them to customers across the nation. For now, Debbie is not required to charge sales tax to out of state clients. But that could soon change. Billions of dollars are going uncollected in online sales tax.  Business owners are worried this could cost them. 

"It would be an accounting nightmare and I am a C.P.A. And I know how to do accounting but I would have to be doing accounting and sales tax for all these states," she explained.

The Oklahoma Tax Commission says there is a plan in place, that includes software to help business owners manage sending sales tax to other states. 

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