Online Sales Tax

Online sales tax is a tax levied on purchases made over the internet. Traditionally, only businesses with a physical presence in a state had to collect sales tax. However, recent laws have expanded this requirement, allowing states to charge sales tax on online sales even from out-of-state sellers. This means when you buy something online, the seller may add sales tax to your total, similar to how local stores do. The revenue from this tax helps fund public services like schools and roads, ensuring fairness between online and brick-and-mortar retail businesses.