Taxes may be coming for internet sales

By: Associated Press
By: Associated Press

Soon, discussions about the "good old days" will include remembering what it was like when you didn't have to pay taxes on stuff you bought on the Internet.

While many shoppers look to online shopping as a way to find bargains and avoid paying sales tax, those days may soon come to an end. With the recession eating away at state budgets, governments are stepping up efforts to collect taxes on Internet sales.

As you might expect, those efforts are being opposed by companies that do business online only and have enjoyed being able to offer sales-tax free shopping.

For example, in New York State, has gone to court against the Albany government over a new law that requires online companies to collect taxes on shipments to New York residents, even if the companies are located elsewhere. New York is also seeking to tax songs downloaded from Internet services like iTunes.

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