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
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
LATEST FINANCE HEADLINES
Illinois Budget Crisis Means Lottery Winners Have to Wait for Payout12 hours ago
The Week in Public Finance: Blame the Market, New Jersey Love and a Win in Wayne County1 day ago
What Happens When You Start Taxing Muni Bonds?1 day ago
The Alaska Governor's Odd Request for Obama1 day ago
After Ferguson, States Struggle to Limit Crippling Court Debt2 days ago
Michigan Fails to Fund Roads, Again4 days ago
More from Finance
Didn't find what you were looking for? Search our archives, or subscribe to one of our e-newsletters, and we'll bring the news to you!