My state just started doing destination based sales tax for those that ship goods here. I thought the idea was to make the tax system less complicated! Sales tax will be based on where the item is shipped, not where the seller is located. This is just crazy!
The shopping cart on Etsy was not set up to accommodate this type of change so I am going to have to manually look up the tax rates and charge customers accordingly. Fortunately, most of my sales are out-of-state so for now it should not have a huge impact on my business.
After some reading, I have found that my state is the 22nd in the country to switch to this kind of tax. This is supposed to level the playing field between internet companies and the brick and mortar businesses but all I can say is , there has got to be a better way.
I found an article, Why Congress Should Not Authorize a State Sales Cartel, which gives good arguments against having a destination based sales tax and I totally agree with it.
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