Wisconsin Prepares for Pilot 'Net Tax Collection

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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 is contracting with Esalestax.com, Pitney Bowes and Taxware International, Inc. 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.

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