Different Sales Tax Systems for Online and Main Street Retailers

Wednesday, July 7, 2010 at 9:57 PM by

Ever notice that you don’t pay sales tax when you make a purchase from Amazon.com? The owner of your local bookstore has noticed, especially because the sales tax puts his or her business is at a competitive disadvantage with online retailers.

The Milwaukee Journal Sentinel ran a recent article and then a follow-up editorial about the tax advantage online retailers enjoy over Main Street businesses. The Wisconsin Budget Project also recently released a paper on this topic, which includes information about how much money is at stake, why there are different rules for different retailers, and what Wisconsin can do to level the playing field and to make a modest dent in the state’s deficit.

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