Monday, April 2, 2012

Taxman Cometh


To dispel the myth of the tax-free Internet purchase, every Mainer should familiarize themselves with the laws of our great state. They will find that anyone purchasing taxable goods and services while in the state of Maine must pay the appropriate sales or service tax. Most responsible vendors operating in the state of Maine collect the tax at the time of purchase to free their customers from the task of recording, reporting and then paying the state its legal due. Buy a computer online from Apple to be delivered to an address in Maine and the sales tax is included in final price.

Some Internet vendors want to play a Harry Houdini with the sales tax. Making it disappear from their shopping cart, only to have it reappear at your tax time. They are going against several hundred years of common business practice to create an unfair advantage for themselves and precarious position for every Mainer who shops at their websites.

Dangerous for the customer who has the taxman knock on their door with an audit in hand. The sales tax that is not collected by these irresponsible Internet vendors and then the customer forgets to pay at tax time becomes an avalanche of penalties and late interest charges. So the Mainer who thinks they are getting a great deal online, in truth is opening their door to only find headache and heartache. Don’t think for a moment that the bean counters at the Department of Administrative and Financial Services (the Maine IRS) will not seek to justify their jobs by not collecting those overdue taxes.

If leveling the playing field closing the legal loophole that these companies are using to cheat Maine causes them pause, then it can only be a good thing. Because if these Internet vendors are underhandedly operating in Maine, one has to consider what other disreputable steps are they taking in the name of profit.