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Originally posted by TSB8C
Perhaps a new Boston tea party would be in order if such a tax is passed. First of all, it's unconstitutional because the Constitution expressly states that no taxes may charged on goods shipped from one state to another. And let's remember that the original party was over a mere 10% tax.
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While you may not have to pay sales tax in the state where you bought the goods or services, you must pay state use tax on taxable goods or services purchased for use in your home state. You cannot be taxed by the state you bought the product in (unless you purchased it in your home state), but your home state can tax you on the purchase.
Most states are working on something called "Streamlined Sales Tax Project" which will address some of the inconsistencies between state laws which makes is such a nightmare for Internet/Catalog retailers.
http://www.nga.org/nga/salestax/1,1169,,00.html
Amazom.com, Walmart and others are already collecting the state taxes on good purchased over the internet.
There is no law in the US that prohibates taxation on goods sold between states. The Internet Tax Freedom Act (ITFA) set no restrictions on whether states can tax sales over the Internet. Instead ITFA only prohibited states and local governments during a three-year moratorium, from October 1, 1998 to October 1, 2001.