Why Intuit collects sales tax on Internet sales

Although Intuit does generate a large portion of multi-state sales via the Internet, Intuit does business in each state and the taxing authorities of the individual states have previously determined that Intuit has a legal presence (commonly referred to as "Nexus") in their respective states. Therefore, Intuit is required to collect and remit the applicable sales tax for all taxable transactions in their state. Click here for more information.

Congress did pass a moratorium on taxable transactions that are generated exclusively through the Internet. However, any company that already has Nexus in a state (such as Intuit) is still required to conform to existing state laws regarding collecting and remitting sales tax on taxable transactions that occur in that state.