Pa. online shoppers subject to sales tax - WFMJ.com News weather sports for Youngstown-Warren Ohio

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Pa. online shoppers subject to sales tax

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Mercer County, Pa. -

As of Easter Sunday, the rules have changed for online shoppers in Pennsylvania.

It's a new law requiring companies that ship or sell goods to customers in Pennsylvania collect sales taxes. 

The new law requires the sales tax collection even if a business has no physical address in Pennsylvania. 

Tax collection on internet sales has been an ongoing debate because it represents a loss of tax revenue for the states. State Representative Tedd Nesbit of Mercer County said that's significant when you consider the number of online sales.

"That's not being taxed at all even though if you bought a similar product in a store you would be paying taxes," Nesbit said.

"A company like Wendell August, based in Grove City, does online sales worldwide and it already applies the sales tax for sales in Pennsylvania and Ohio.

At the popular Outlets in Grove City, shoppers had their own opinions.

"Especially if I'm buying something being shipped from another state. I prefer that there not be any sales tax,  and it definitely would change my spending habits," said Tyler Matacik.

"It wouldn't change it very much for buying stuff online because online has the perks of convenience and everything," said Dalton Callahan.

There is an exemption that allows companies to put the burden on the customer if they post a written warning that the sales tax must be paid. The purchaser is required to file a "use tax" return if the tax is due for a purchase and delivery in Pennsylvania.

"But I don't think it's very realistic that people are going to keep track of that and file a return, but technically that's what you're supposed to do," said Representative Nesbit.
 

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