Governors Seeking Internet Tax

Tim May tcmay at got.net
Sat Aug 4 23:41:22 PDT 2001


On Saturday, August 4, 2001, at 10:13 PM, Declan McCullagh wrote:

> I'm no expert on this -- in fact, I've studiously avoided becoming one
> on this -- but my understanding is that under the Quill decision,
> California can't force PennsylvaniaBooks.com to collect sales taxes on
> shipments to SF and remit it to the Calif tax collectors.  (Without
> nexus, that is.)
>
> Ideally the guvs would like federal law to modify the Quill ruling.


I'm with Steve Schear on this one.

If Alice in California buys a thing from a person or store in 
Pennsylvania, and that store is not operating in California (the 
"nexus"), then charging a tax on that item is NOT a "sales tax." It is 
much more like a tariff on goods entering California.

(What else could it be? The sale is not happening at a store in 
California, or even arguably at an out-of-state "branch" of a store in 
California, there being no such store at all in California. Thus the 
"tax" is really just a tariff or duty. Something specifically forbidden.)

Of course, states like California get around _parts_ of this ruling when 
people bring cars bought elsewhere into California: they require some 
calculated amount of the effective sales tax, had the car been bought in 
California, to be paid upon registration of the car.

--Tim May





More information about the cypherpunks-legacy mailing list