Wisconsin Prepares for Pilot 'Net Tax Collection

Anyone who has bought goods or services over the Internet, or is participating in e-Commerce themselves, knows how loud the tax man is knocking on the door of cyberspace to begin collecting tax. However, coming up with a viable method that can be collected, both intrastate and interstate, has been difficult at best.

Wisconsin is one of four states that have agreed to participate in a pilot project to electronically charge tax. The state's Department of Revenue [1] is contracting with Esalestax.com [2], Pitney Bowes [3] and Taxware International, Inc. [4] to test software and begin to see if the system works.

Dubbed the 'Streamlined Sales Tax Project,' other states include Kansas, Michigan and North Carolina. The pilot is part of a larger effort with 39 states should the test be positive.

A look at the numbers confirms the vast amount of money that is being left on the table. In 1999, $3.5 billion of the $10.9 billion collected in tax across the state was deemed to be sales tax.