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Small Business Report: 7/28

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    States keep close eye on online sales tax legislation

  • Duration 1:49
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Online and catalog retailers are closely watching the progress of proposed federal legislation.

That would allow states to force those retailers to charge sales taxes even when they don't have a store or a warehouse in -- state.

The controversy goes back -- 1992.

When the Supreme Court ruled that states could force retailers to collect -- taxes only if it had a physical presence in that state.

A lot of Internet and catalog retailers do not have that of course.

Amazon does and it's already collecting sales taxes in six states with seven more states in the pipeline.

Still consumers do not pay any sales taxes on billions and online and catalog purchases and more states want the money.

Especially after getting slammed in the recession which cost them.

Billions in tax revenues states say the legislation could generate 23 billion dollars a year and new tax revenue for them including 400 million and Tennessee.

That.

Much money you gonna put it real -- is about 7000 teachers it's about 7000 police officers -- what I'm not I'm not proposing that held the -- there's a lot of discussion.

For the -- -- that -- that much less in taxes to our citizens so -- it's a wide variety of things.

Now that legislation beginning to get -- on Capitol Hill I think you'll hear from small business from taxpayers and consumers who are really concerned that.

The benefits of this bill.

As much as 1%.

State local tax revenue don't justify the new burdens on American business in other words the -- just hasn't worked squeeze.

The legislation would provide some kind of exemption for smaller retailers.

500000.

Or even a million in annual sales that's it for this edition of the small business report I'm Peter Barnes Fox Business Network.

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