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With those customized software and service contract examples, it sounds like you are addressing mostly B-to-B sales - commercial customers - and their related sales and use tax issues. If you aren’t capturing these taxes for some distant jurisdictions, then we would assume (make that ‘hope’) that these commercial customers are fulfilling their use tax obligations on their end. In other words, someone is probably required to be doing this work already.

Yes, I understand that our customers have to assess "use tax" and that someone is doing the work already. However, they should already be familiar with the sales tax laws of the states they have nexus in. That would not be the case if our company had to charge sales tax. We would have to learn the sales tax laws in significantly more states than under the current law. If you can't see how much of an extra burden this represents, then I really don't know what to say.

The real issue is that internet retailers really, really don’t want this. And neither do enough consumers. But if we believe that sales taxes are a legitimate source of state and local revenues, then at the very least we should be consistent in application.

I don't blame them for not wanting to do it. Ignoring the fact they would have to charge a sales tax that the customer would probably not pay as use tax, it increases their regulatory burden significantly.
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