And, oh yes, let us not forget their most important function spending our money. So, if you buy a computer from Dell Computer and don t pay sales tax on your direct purchase, you should be sending your state a check for the equivalent amount of sales tax which would have been collected if the computer were purchased in the state. Let's face it. For many of us, when it comes to making that final decision on who to buy from it is a price issue. And when you're talking about a purchase worth hundreds of dollars, the issue of sales tax can be a major factor in our final decision.
Sales taxes are a heavy part of the revenue streams for state and local governments.
If sales tax revenues decline there will be only two choices, cut government services or find other areas to tax and pick up the slack. Two of the biggest challengers have already started the skirmish. E-commerce is changing the way we do business. Now is the time to establish the playing field and make it fair between all businesses. Let's face it, it's only a matter of time before all purchases will be subject to sales tax.