Internet sales tax issue grows

The Internet sales tax issue continues heating up, which is not surprising given that state budgets have been hit hard by the economic downtown.  The latest battle ground is North Carolina where has filed a lawsuit against the North Carolina Department of Revenue seeking to prevent the state from getting the names of everyone who has made a purchase from since 1973.  This may just be the case that eventually determines whether sales taxes must be paid on Internet sales.  The stakes are huge for the states and Internet retailers, as well as a major interpretation of federal law.

The case is In re: LLC vs Kenneth R. Lay, Case No. 10-00664, U.S. District Court, Western District of Washington.

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