Reedy on task force to study taxes on Internet purchases

Reedy on task force to study taxes on Internet purchases Sen. Joe Reedy, Vermillion, has been working this summer as a member of the interim Streamlined Sales Tax Project Task Force.

He attended the first meeting July 19 in Pierre at the State Capitol.

The task force is studying the merits of state taxes on e-commerce.

A presentation by Harley Duncan, commissioner, Advisory Commission on Electronic Commerce, posed the question "What must states do to collect taxes on remote sales?" Duncan also noted that the sales tax can be burdensome and is a complex revenue source, and that there is a need for uniformity and standardization among the states in the collection of revenue from remote sales. Duncan also said the estimated revenue impact of collecting taxes on all forms of Internet sales for the year 2003 is $21 billion. But, he concluded, states must get serious about simplifying sales tax collection.

Several other presentations were also given, addressing the issue of state sales tax collection on Internet sales. Many noted the states' need to work cooperatively on the issue.

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