Legislators Vote to Impose Taxes On Online Purchases

The U S Supreme Court said states can collect sales tax from online retailers. Guess what Governor Phil Murphy opted to do? You guessed it, he signed legislation that will make online purchases more expensive effective November 1st---perfect timing for the upcoming holidays.

Bill A-4496, provides for the collection of sales tax by market place facilitators, such as E-Bay and Amazon, along with certain remote sellers, who conduct their business through online transactions.

Most of the top 20 online retailers in the US already collect taxes in nearly all states; however, smaller operations and sole proprietors would be hit harder.

The Supreme Court ruling permits the taxation of internet retailers with no physical presence in their states — and thus limited influence over state legislators — violates the principle of no taxation without representation. Tax- and power-hungry politicians will likely use this new power not just to increase taxes, but to impose other tax and regulatory burdens on out-of-state businesses. Having the power to tax and regulate employers and workers who cannot retaliate at the polls is a dream come true for many politicians. By making almost all online purchases subject to sales taxes, the decision will also reduce pressure on states to keep sales tax rates low.

The New Jersey Treasury Department estimates the newly imposed sales tax will garner anywhere from 216 to 351 million dollars in revenue. Furthermore, some argue that imposing a sales tax on online sellers will level the playing field with traditional brick and mortar retail operators, who by law, are required to collect and remit to the treasury, sales tax on certain purchases.

Legislative District- 13 Assemblywomen Amy Handlin, R-Lincroft, and Serena DiMaso, R-Holmdel, voted against the tax.

State Senator Declan O'Scanlon--one of two Republican senators--and a self-proclaimed "straight shooter," voted for the tax.

Senator O'Scanlon is no stranger to voting controversy. His recent vote for the gas tax and vote permitting illegal students financial aid, has drawn the angst and consternation from conservative sectors of his party. In June, Senator O'Scanlon, along with Assemblywoman Serena DiMaso, failed to attend a crucial vote on gun safety and other legislative matters, as they both opted to attend a country music festival in Nashville, Tennessee.

The vote passed in the Senate 23-14, while over in the Assembly, the vote passed 43-15.