Watch Out: Use Tax is Rearing Its Ugly Head Again

But earlier this month, the state of New York passed the Internet Sales Tax provision, which requires out-of-state online merchants to collect sales taxes from New York residents. The state law could have national ramifications and make life difficult for direct marketers. Remember: The big hassle with regard to the use tax battle isn’t so much having to charge customers more than just the purchase price plus shipping and handling. It’s the hassle of having to adopt so many different state tax structures and having to communicate that to customers.