If you:
1. Live in a state that charges sales tax
and
2. Buy something from an online store that does not charge you sales tax,
then you are supposed to:
3. Calculate the sales tax yourself and add it onto your annual state tax bill.
Not surprisingly, as we reported last week, almost no one actually does this.
As online retailing has grown, sales tax has been a growing issue for state governments, which say billions of dollars a year in sales taxes are going unpaid. Brick-and-mortar stores don't like it either, because it gives online retailers an advantage.
But states may soon be able to force out-of-state retailers to charge state and local sales tax. The Hill reports:
The Senate is expected to pass legislation this week that would empower states to tax online purchases.