That sounds harder and more expensive for the business than simply having a standard system to collect and pay the sales tax.
Multiply by 50 states, and it's up to 25 hours a month of work.
For those of you who have never done this, sales taxes are a lot more complicated than they seem. In the three states where I've had retail businesses, different types of products have different sales taxes and each has to be reported individually.
It gets exponentially more complicated if your state also has use, consumption, or other retail taxes; and if it requires you to report purchases your company made out of state.
If I had a popular company, even with small sales, I could easily see this becoming a week-long headache I offload onto my accountant, who will then charge me extra.
So not only do I have to raise prices to include the sales tax for various states, I have to factor in the extra accounting expense.
I've worked with a lot of small businesses so I don't mean to disparage things but this seems like a really obvious law that should be enforced.
That's a pretty big if. The $200k cutoff from the article is South Dakota. I've never had a business in a state that had any cutoff at all. Only sell $1 this quarter? Pay the tax.
Please be more specific.
Also, remember that every single one of those bucks will be passed on to the customer in higher prices.
Considering you are already required to do it for where you are located it's just a little more work to automate it for all locations.
Also, I wouldn't generally classify it as "a little more work", since in many cases the old system could be hard-coded and the new system requires reworking the checkout flow to capture the full mailing address and pass it through an external API before calculating the transaction total.