April 30, 2001, 12:00 AM

The Sales Tax Issue Is Alive and Well

(Page 3 of 3)

 

Circuit City uses proprietary software to calculate sales tax on all online purchases, something it has done since 1999. The company won’t say how much it costs to collect and remit the tax.

 

“Those who see the writing on the wall are supportive of

collecting sales tax,” says NRF’s Whittaker. “A lot of Internet retailers believe

they are not getting a competitive advantage by not collecting a sales tax.

This is because consumers shop online for convenience.” How legible that writing

on the wall is will have a lot to do with what happens on Capitol Hill this

year.

 

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