It’s here! Cyber Monday has final arrived and if you’re like me you are going from site to site looking for the best online deals for the must have electronic gadgets, clothing and jewelry. But for many states and brick-and-mortar retailers, Cyber Monday means loss of much needed revenue. It’s estimated that states collectively lose about $8.6 billion from uncollected sales taxes on e-commerce purchases.
The sales tax extension on medical marijuana passed by D.C. Council earlier this year is estimated to bring in more than $400K over the next four fiscal years. The tax covers all weed sold in the metropolitan area. These user will pay $350 a month for an ounce of pot, which is anticipated to bring in $26K by the end of FY2011. The nation’s capital will collect over $230K in taxes from 848 users by FY 2014.
Well, we know that sales tax compliance can be a tricky sport to master. And we know that sales tax collections in general have been down some as the economy re-sets itself.
And we sure know that localities and states are desperate for revenues.
In this story, all these factors come together. And its kinda funny, if you aren’t staff over at the Suffolk County, NY Finance Department or the New York State Department of Taxation and Finance. Continue reading