Support Dying for Internet Tax Moratorium

Pro-tax bills have surfaced in both the House and Senate, supported by legislators who recognize the loss in tax revenue that states will continue to suffer as sales on the Internet proliferate.

The current Internet sales tax moratorium expires in October, 2001, and it is unlikely any further legislation to either extend this moratorium or institute a sales tax policy will occur this year.

All but five states have a sales tax, but currently no state enforces the taxation of sales if the seller has no in-state store or warehouse. The use tax, which complements the sales tax, is a tax paid by the purchaser on out of state sales, but this tax is voluntary and few purchasers comply.

It seems there is no movement towards enforcing the use tax; instead legislators who favor sales tax on Internet sales are recommending that Congress work with the states to create a simple and uniform tax policy with which all states can comply.