For example, in some places, the Twix candy bar is considered to be a grocery item because of its cookie center. In others, it is considered to be a candy item. The burden of the exemption will be shifted from the retailer to the person claiming the exemption. Legislation will be drafted and presented to state legislatures early next year. If 20-25 states enact the legislation, that may be enough of an impetus to pursue congressional action.
More education is needed.
Mr. Johnson suggested that local government monitor the issue. Councilmember Judy Bell, Orem City, asked why some businesses collect sales tax on Internet sales and others do not. Mr. Johnson explained that two factors affect the collection of sales tax. Second, some companies simply collect the tax on a voluntary basis - they have a policy of collecting sales tax, even if they are not required to collect it. Councilmember John Winder, Sandy City, discussed Gubernatorial Candidate Bill Orton's statement at the gubernatorial debate held at the ULCT Annual Convention that there is a use tax in effect now that should deal with the e-commerce issue, and asked Mr. Johnson's opinion.