Tax Horror Stories

Vermont Taxing "Electronic Mall"

According to the State of Vermont, any "electronic mall" located on the superhighway of the Internet located outside the state has an obligation to the state for collecting taxes owed on sale of products or services to the Residents of Vermont. Just another way for a state to make a few more bucks for itself except it will only harm them in the long term. This is a clear violation of the Internet Tax Freedom Act, which prohibits the taxation of the Internet on its use and services plus these taxes are seen as "discriminatory taxes" under the provisions of the Act.

The company doesn’t even have to be based in Vermont or have servers there for it to be burdened with the obligation to collect taxes there. Actions like these by the State have prompted many businesses to stay away from there. We just hope that Vermont realizes in time that the future of business is e-commerce. By scaring off business they might be gaining something for now but are losing in the long term.