Business
8:32 am
Mon April 22, 2013

Reed, Chafee Push to Collect Online Sales Tax

Senator Jack Reed and Governor Lincoln Chafee are asking Congress to pass legislation that allows state to collect taxes from online purchasing. 

Senator Jack Reed is a co-sponsor of the “Marketplace Fairness Act,” which would open the door for states to collect sales taxes from online retailers.  Right now it’s up to shoppers to pony up when filing their income taxes.

A study by the National Conference of State Legislatures finds Rhode Island missed out last year on an estimated $70 million in uncollected sales tax. Opponents to the bill say it puts a financial squeeze on Internet retailers based in states where there’s no income tax.

The Senate is expected to take up the bill this week.