Originally published June 15 2005
Many states push for internet sales taxes
by Mike Adams, the Health Ranger, NaturalNews Editor
ABC's 9News.com covers the prospect of electronically collecting sales tax on internet sales of small online companies: 43 states are pushing for the initiative, citing huge losses due to Internet sales.
9News has learned that 43 states have joined together in a coalition to collect sales tax on all Internet purchases.
You already pay sales tax when you go online to buy from an established business like Eddie Bauer or Wal-Mart.
But a lot of small Internet businesses and individual transactions float under the radar.
The coalition is seeking expertise from Colorado's high tech industry to get the tax collection done electronically.
"The Internet Tax Freedom Act says that states cannot treat sales on the Internet differently than they treat any other kind of sale--and this system that we've created does exactly that," says Scott Peterson with the Conforming States Committee, which is spearheading the effort.
"It treats every sale exactly the same regardless if it's over the counter, over the catalogue, over the phone or over the Internet," he says.
The states say they've been losing as much as $16 billion annually to the Internet.
They say that new software will make collecting the money almost automatic and that they can have a system in place by Oct. 1.
Colorado Governor Bill Owens says he doesn't like the idea and that Colorado won't be part of it.
"We're getting lots of taxes in terms of income taxes and other taxes because of the rise of the Internet, we shouldn't tax sales over the Internet," said Owens.
The proposal is for the new system to initially be voluntary.
"So (unless) Congress were to act and make this mandatory, there would be no penalties," says Peterson.
But there's a plus for businesses who do adopt the software.
The states say the electronic system is so good, they'll designate participating businesses "audit proof."
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