But, if you bother to check, retailers had a record-setting sales year, in spite of the rising amount of business done on the Internet. In addition, the sales taxes pouring into the state treasury continue to go up each year. Obviously, if the state taxed all purchases made on the Internet, the state sales-tax revenue would have been slightly higher. But even if the state sales tax was required, sales taxes on Internet purchases would still be less than those at retail businesses who must also collect city and county sales taxes, which means retailers would seemingly still be at a disadvantage. In reality, retailers already have an advantage over Internet sales for several reasons.
People often are unwilling to make purchases on the Internet because of concerns about returns.
If you buy something at the mall that doesn't fit or doesn't work, you take it back and get your money refunded. If you buy the same product on the Internet, you send it back and pay the shipping out of your own pocket. Shipping costs are a major factor in this equation too. Shipping costs often exceed what the sales taxes would be if the items were purchased locally. Consequently, unless the item is a big-ticket item or the purchase is for multiple items, Internet products can be more expensive, especially if you have to return a product.