The state of Massachusetts planned to require more internet retailers to collect sales tax starting July 1st. But the initiative has been pulled just days before it would take effect.
Under the Baker administration plan, internet retailers with sales of $500,000 and 100 transaction per year in Massachusetts would have to charge the tax.
But the state rescinded the plan after two lawsuits were filed. The Department of Revenue said it will reintroduce the tax through a new regulation this fall.
"I'm very surprised to hear the state plans another rule based on the same rationale as the one that failed this week," said Steve Del Bianco of NetChoice, an e-commerce trade association, which filed one of the suits.. "If the state comes back again with a rule that blatantly violates Supreme Court precedent and the Internet Freedom Act, well, we'll refile our lawsuit and I look forward to another winning day in court."
Del Bianco said that 24 of the 25 largest internet retailers doing business in the state, including Amazon, already collect sales tax.