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Younger Americans Oppose Internet Sales Tax (Gallup Poll)


Online Sales Tax

A recent Gallup poll reveals that 59% of Americans ages 18 to 29 oppose federal legislation to "allow each state to collect sales taxes on purchases its residents make online over the Internet." 

Survey results

Of those surveyed, 57% say they oppose, with demonstrably more resistance from the younger age brackets (see below).

OnlineTax

The Gallup study also notes that Democrats support online sales tax legislation slightly more than Republicans.

The tax that no one pays

Not surprisingly, consumers who've become accustomed to sales tax free online shopping, object to having to pay. Current tax law requires consumers to pay tax on most Internet purchases when the seller does not collect sales tax. This is called consumer use tax and only 1.6% of consumers in states with sales tax actually pay it.

States stand to gain $23 billion

Many state Governors support the Marketplace Fairness Act of 2013 (MFA), hoping that it will help them actually collect these tax dollars. The National Governors Association estimates that states could gain an additional $23 billion in revenue if MFA becomes law.

It remains to be seen whether MFA will pass the House (it has already passed the Senate by a vote of 69 to 27). In the absence of federal legislation, states continue to pass laws trying to capture online sales tax revenue.

How does your business handle sales tax changes?

 


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.