U.S. Senator Mark Begich says an internet sales tax currently in the U.S. Senate will affect very few Alaskans if passed. The tax would require all internet sellers who turnover more than $1 million annually to pay sales tax to the state each customer resides in.
Sen. Begich(D-AK): “It’s basically making sure that when you purchase from a vendor that the vendor charges the appropriate sales tax for your area. In the case of Alaska, we have no state sales tax, and so therefore if you live in Alaska and you’re purchasing products over the internet, there is no state sales tax that will be applied.”
The state’s junior Senator stressed that only retailers selling over the $1 million threshold will feel any effect, and he estimated there would be very few companies falling into that category.
However, Johanna Bales with the Alaska Division of Taxation said this legislation would mark a distinct change in the way the federal government is involved in state sales tax…
Bales: “I mean, the long-standing premise has been that you’re only subject to that state’s laws and having to collect that tax if you have a physical presence in the state.”
Senator Begich said today’s vote was simply a cloture vote, a more comprehensive vote, complete with amendments, is expected by the end of the week.