Moratorium renewal may leave door open to Web tax.(state sales taxation of Internet-based sales)(Brief Article)

Purchasing, June, 2001 by Gottlieb, Daniel W.

With the current moratorium on Internet taxation set to expire in October, some members of Congress are seeking ways to extend the moratorium yet leave the door open for state and local authorities to collect sales taxes on e-commerce. Several conflicting bills are in the pipeline to extend the five-year moratorium.

But even legislators like Senator John McCain, who have taken a hard line keeping the Internet permanently tax free, have indicated willingness to compromise on state sales taxation of Web-based and catalog mail sales. The states claim they are losing revenues already and that as much as $30 billion from taxes on these types of sales could escape their revenue collectors in 2003, according to a study released by the National Governors...

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