Internet Taxes Pit States Against IndustryBy Neil MunroStaff Writer


Washington Technology Online State and Local
Hyper Text
Inside Washington
Tech Business
State Local

State of
the $tates

Internet Taxes Pit States Against Industry

By Neil Munro
Staff Writer

"Any tax scheme compensating states for losses caused by out-of-state online commerce would cost more to collect than it would be worth."

- Bill Melton
CyberCash Inc.
The raging battle over Internet taxes is likely to end up in court regardless of whether U.S. lawmakers approve a controversial bill that would curb taxes on Internet companies, say congressional, industry and state officials.

If members of Congress pass the Internet Tax Freedom bill, sponsored by Rep. Chris Cox, R-Calif., and Sen. Ron Wyden, D-Ore., industry and states will meet in federal courts to dispute how many Internet-related taxes would be curbed or barred altogether, said Neal Osten, committee director for commerce and communications at the Washington-based National Conference of State Legislators.

States will eventually face the Supreme Court in a rerun of the 1992 Quill Corp. vs. North Dakota Supreme Court decision, said executives and government officials. That decision declared that the Constitution's interstate commerce clause freed out-of-state mail-order merchants from any legal requirement to collect a state's sales taxes when selling items to a resident of that state. Only when there is "nexus" -meaning the merchant has a store or an office in a particular state - can a state force the company to collect sales taxes, according to the decision.


©1997, TechNews. All rights reserved.


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above.

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.


contracts DB