E-commerce Sales Tax Law

E-commerce sales tax law requires online retailers to collect and remit sales tax based on the buyer’s location, not just where the seller is based. This means if you buy online and live in a state that taxes online sales, the seller should charge you sales tax, similar to a brick-and-mortar store. Laws vary by state, with some having thresholds before requiring collection. These rules aim to ensure fairness between online and physical stores, generate revenue for states, and comply with recent legal rulings affirming states’ rights to collect sales tax on online sales.