States Look to Collect Tax on Internet Sales

Many are asking people to fess up when they fill out their IRS forms

By Jim O'Neill, Newser User

Posted Feb 28, 2008 10:26 PM CST

(Newser) – As tax time draws near, more Americans may be stumbling upon an extra line on their state returns, Forbes reports. About half of state governments—including New York, Michigan, California, North Carolina, and Ohio—are trying to collect their fare share of sales taxes from Internet sales. Chances remain slim, though, that most buyers will admit—or pay—anything.

With no federal Internet sales tax, states are on their own in efforts to collect from residents who buy items from out-of-state vendors via the Internet; most states are asking residents to pay voluntarily —without much luck. A Minnesota survey of 19 states showed just 1.6% of taxpayers acknowledged they owed anything.

US-ECONOMY-CYBER MONDAY (Getty Images)

A workerpulls and scans merchandise in the Amazon.com sorting area in this 2004 file photo at the massive Amazon.com shipping and receiving facility in Fernley, Nev. Amazon.com Inc. said Tuesday, April... (Associated Press)

Increasingly, state governments are asking online shoppers to pay local sales tax. (Getty Images (by Event) Individuals)

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States Look to Collect Tax on Internet Sales

Many are asking people to fess up when they fill out their IRS forms

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South the Big Winner in New Census

Northeast, Midwest would lose seats if today's census was used

Cash-Strapped States Raise Taxes as Revenue Declines

At least 10 states face substantial budget gaps

Amazon to California: Ditch Tax, Get 7K Jobs

State senate, local retailers hostile to offer

Amazon Ditching Calif. Affiliates Over Tax Tiff

Retailer opposes new law that would require it to collect sales tax

States Putting Antitrust Screws to Google, Too

California, New York, and Ohio join Texas in starting inquiries

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Many are asking people to fess up when they fill out their IRS forms

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California • retail • income tax • New York • online retailers • Ohio • North Carolina • Michigan • sales tax • state governments • state sales tax

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

South the Big Winner in New Census

Northeast, Midwest would lose seats if today's census was used

Cash-Strapped States Raise Taxes as Revenue Declines

At least 10 states face substantial budget gaps

Amazon to California: Ditch Tax, Get 7K Jobs

State senate, local retailers hostile to offer

Amazon Ditching Calif. Affiliates Over Tax Tiff

Retailer opposes new law that would require it to collect sales tax

States Putting Antitrust Screws to Google, Too

California, New York, and Ohio join Texas in starting inquiries

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