Ridgewood NJ , According to Joseph Henchman ,Vice President, Legal & State Projects, of the Tax Foundation:
Since 2008, several states have attempted to tax online purchases by their state’s residents, https://taxfoundation.org/article/trend-5-amazon-taxes even when the seller has no physical presence in the state. These laws, nicknamed “click-through nexus” or “Amazon tax” laws (after their most visible target), have been extremely controversial.
Contrary to the claims of supporters, do not provide easy revenue. In fact, the nation’s first few Amazon taxes have not produced any revenue at all, and there is some evidence of lost revenue. For instance, Rhode Island has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax.
While efforts continue at the state level to enact these laws, their dubious constitutionality and lack of success in raising revenue or leveling the playing field has shifted attention to the federal level.
Congress is considering proposals to set standards for state sales tax collection on interstate sales. Two recent proposals in particular would eliminate the physical presence rule but otherwise make advances towards ensuring that states reduce the burdens associated with collecting their sales taxes.
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Why should online purchases be tax exempt? These big companies could easily collect taxes, but they don’t want to. They have an 8% cost advantage over the brick & morter stores when they don’t collect taxes.
In an ideal world they would charge tax online but lower the VAT across the board to 3.5%…in other words classify the entire state as an economic redevelopment zone.
There is no VAT tax in America Rob.
As usual, NJ gets screwed.