Business and technology have come a long way since the beginning of U.S. sales taxes, implemented by the federal government in the early 1930’s. The reductions of government revenue due to the prohibition and war caused local lawmakers to implement local, state, and federal taxes for a steady income stream to help fund development projects and war efforts.
Fast forwarding to modern business, where there are more online companies than brick and mortar stores in the United States, entrepreneurs and customers are wondering how to deal effectively with sales tax. Given that local governments implement different sales tax percentages, or offer no sales tax as incentives for spending, it is very difficult to pinpoint where sales are coming from.
Luckily, if you are an entrepreneur and starting an ecommerce business all you need to know about sales tax is provided below.