Local company develops system to collect internet Sales Taxes


Starting next month, Connecticut will be forcing more internet retailers to charge the state Sales Tax, and a Connecticut company has developed the software system to make it happen.

This year’s Cyber Monday may be the last time you’ll be able to find internet sites that don’t charge the state Sales Tax on your purchases. Major retailers like Amazon are already doing it, but a Supreme Court ruling earlier this year and new technology makes it easy to charge and collect Sales Taxes from all internet retailers no matter where they are.

A Norwalk-based company called TaxCloud has developed the software that makes charging and collecting the Sales Tax easier no matter where the internet retailer is located. It’s been complicated in the past because Sales Tax rates vary all around the country. In some places, there’s both a State and City Sales Tax with different rates.

Related Content: High Court: Online shoppers can be forced to pay sales tax

47-year-old David Campbell of Ridgefield developed and patented the software to make it easy for internet retailers to charge the proper sales tax rate no matter what state the customer is in. Campbell explains it this way, “When a customer goes to check out and they type in their address, in the same way that that e-commerce system will currently calculate shipping, it also talks to us and we tell them
how much tax to collect for any address in the country.”

Art Linares gave up his shoreline-based State Senate seat to run for State Treasurer. He lost the primary and landed a job with TaxCloud, and says current estimates show the state losing at least $100 million a year on internet sales. He adds, “Online sales are increasing, and the state, the states, need to take advantage of that. This is a private sector solution to solve that problem.”

Starting Dec. 1st, the State of Connecticut is going to require all internet retailers that do a certain number of transactions here to start collecting the state Sales Tax. The tax-free ride on the internet is quickly coming to an end.

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