Robby --- there was something about that a few days ago on a couple of our local news channels about internet sales, and that Californians are required by law to pay taxes on internet purchases. Is calle a 'use tax', ore something like that ...
For now ... they want it to be voluntary ... and we are supposed to report it!
Here's one of the articles I found on it:
California reconsidering Internet sales taxes
By The Associated Press
SACRAMENTO — With his state staring at a budget deficit that could hit $35 billion, California Gov. Gray Davis is rethinking his longstanding objection to imposing sales taxes on Internet commerce — a move that could ignite similar steps around the nation.
With states around the country facing a collective $50 billion budget gap this year and $70 billion next year, lawmakers are increasingly eyeing online revenues to plug their shortfalls.
Last year, Internet sales ballooned to $79 billion, or about 3 percent of all retail sales, according to Forrester Research.
California alone may be losing $1.7 billion this year by not taking a deeper cut of Internet sales, which is why two bills to tax Internet sales have been filed in the Legislature.
If either were to pass, the movement to tax Internet sales would gain serious clout, said Utah Tax Commissioner R. Bruce Johnson, a leader of the push.
"It's difficult to overstate the importance of California's participation in this project," he said.
A U.S. Supreme Court decision says states cannot force businesses to collect their sales taxes unless the company has a physical presence in that state.
While California stores with online sites faithfully collect sales taxes for the state, most online sellers such as Seattle-based Amazon.com say it's impossible to collect sales taxes for an estimated 7,500 taxing districts nationally.
But 34 states and the District of Columbia are trying to come up with a simple standard from a hodgepodge of sales-tax definitions to persuade Congress to lift a national moratorium against Internet sales taxes. Also, major retailers have agreed on a way to collect Internet sales taxes in 37 states.
So far, California and other states with high-tech and investment sectors — including New York, Colorado, Massachusetts and Georgia — have largely watched from the sidelines.