California's Etax Victory
A California court of appeals has ruled that Borders.com is responsible for the collection of use taxes on purchases made by California residents at its Web site.
A California court of appeals has ruled that Borders.com is responsible for the collection of use taxes on purchases made by California residents at its Web site. The decision was a victory for the California State Board of Equalization and could make it easier for some other states to collect revenue from online sales.
Under California law, companies that have "agents" in the state are required to collect a use tax. The Board of Equalization claimed that, since consumers who purchased items on-line from Borders.com could return them to Borders' stores, the stores acted as an agent for Borders.com. Therefore, Borders.com was required to collect a use tax.
"The court confirmed we were correctly applying the term agent, and that we are properly collecting this tax," says Anita Gore, a spokeswoman for the Board of Equalization.
Join the Discussion
LATEST FINANCE HEADLINES
Back-to-School Tax Holidays Losing Popularity Among Lawmakers4 hours ago
Insurance Concerns: Half of Louisiana's Recently Flooded Homes Not in 'High-Risk' Areas2 days ago
The Week in Public Finance: Pensions' Funding Gap, An Assault on Fees and More2 days ago
New Tennessee Drunk Driving Law Endangers Federal Road Funding2 days ago
Hawaii Ends Year with Record $1 Billion Surplus2 days ago
Virginia Faces Budget Shortfall Much Worse Than Expected2 days ago