States Encourage Internet Tax

Yahoo! News (AP) reports:

Come this fall, 13 states will start encouraging — though not demanding — that online businesses collect sales taxes just as Main Street stores are required to do, and more states are considering joining the effort. . . .

The states are offering businesses a promise — and an implicit threat. If businesses register and start collecting taxes this year, they're given a yearlong amnesty from the possibility that states may seek back taxes for online purchases.

The 13 states include Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota, and West Virginia.

Prior posts:
    Apr. 19, 2005 - Senators Introduce Bill to Extend Ban on Internet Taxes.
    Feb. 28, 2005 - Are We Ready for an Internet Tax?.