Court shuts door on online sales tax scofflaws

Editorial by Fayetteville Observer, December 3, 2013.

North Carolina lawmakers, take note. There is a revenue opportunity available. Don't waste it.

The best part is that it's not about adding a new tax. We're already supposed to be paying it. It's just that we don't.

We're referring to sales tax on items purchased from online retailers, like Amazon.com, which refuse to collect the tax. North Carolina law puts the onus on consumers, who are supposed to list online purchases on their income-tax forms and submit payment. We're guessing maybe a tenth of one percent of taxpayers actually do it, and that may be overly optimistic.

But the U.S. Supreme Court - appropriately on "Cyber Monday" this week - turned down a challenge by Amazon and other online retailers of a New York law that requires them to collect sales tax.

It's astonishing, really, that the online businesses have gotten away with this as long as they have. If a state legislature imposes a sales tax, it's meant to be on every qualifying item its residents buy in that state. Amazon may have its headquarters in Seattle, but you bought that watch while you sat in your living room in Fayetteville, which means you owe North Carolina some tax money.

So let's follow New York's lead and collect that money. We need it.