Kiplinger: Online Shopping Could Get Pricier

Generally, shoppers who buy from midsize online retailers will be the hardest hit, says Carl Davis, research director for the Institute on Taxation and Economic Policy. South Dakota’s rule requires remote sellers to collect tax if they have at least $100,000 in sales or 200 transactions in South Dakota. Other states are imposing similar thresholds. Many larger merchants already collect sales tax nationwide. Amazon.com charges state tax on direct sales in all states that have a sales tax. However, in most states Amazon doesn’t collect taxes for purchases from third-party sellers that use its platform. Read more

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