Which of the following best describes the current status of sales tax law and e-commerce?
A) Consumers are only obligated to pay sales tax on e-commerce purchases if the merchant collects it at time of purchase.
B) Consumers have the option to pay or not pay sales tax at the time they make an e-commerce purchase.
C) Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state.
D) Consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant.

Question

Quizplus · Accepted Answer

The current status of sales tax law and e-commerce is that consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant. This is known as use tax and consumers are required to report and remit the tax to their state's tax authority. However, enforcement of this requirement is currently limited and varies by state. Some states have begun to enact laws that require online merchants to collect and remit sales tax even if they do not have a physical presence in the state, but this is not yet a universal requirement.

Which of the Following Best Describes the Current Status of Sales