BUSINESSWEEK ONLINE : FEBRUARY 7, 2000 ISSUE
BUSINESS WEEK E.BIZ -- SPEEDBUMPS Questions Sales Tax Software Must Answer IS THIS PRODUCT SUBJECT TO A TAX? Taxing jurisdictions have thousands of definitions for products and services that are subject to sales taxes. The software must navigate among all these local interpretations. IS THIS BUYER OBLIGED TO PAY A TAX? Billing data and delivery addresses help determine who must pay. But there are other challenges. Charities and businesses that buy goods to resell, for example, get state exemptions. WHAT IS THE PROPER TAX RATE? Rates vary depending on the taxing authority and the type of product. About 7,500 jurisdictions such as states, cities, counties, and special taxing districts impose sales taxes, juggling different rates and definitions of what's taxable. ARE THERE ADEQUATE SAFEGAURDS TO PRIVACY? Merchants have access to sensitive information on personal buying patterns. If state governors turn collection responsibilities over to private companies, the software they use will have to strip out buyers' names, but still correctly calculate the tax. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Tempest Over Taxes TABLE: Questions Sales Tax Software Must Answer INTERACT E-Mail to Business Week Online

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