Politico plans Net sales tax collection push

A Massachusetts Democrats says he plans in July to revive an earlier federal bill aimed at getting a broader swath of e-tailers to collect sales tax from their customers.

A Massachusetts Democrat said Tuesday that he plans to revive an earlier effort to force broader sales tax collection by Internet retailers.

At a hearing focused on what to do about a soon-to-expire ban on Internet access taxes, Rep. Bill Delahunt (D-Mass.) said he remains concerned that states are being deprived of billions of dollars in would-be sales tax revenue because of the massive growth of e-commerce over the years.

"I will be filing legislation come July that hopefully will deal with the issue," he said.

At the moment, if you order something from a company that's located entirely out of state, you're typically not charged sales tax, although technically, most states require you to pay up in the form of a "use tax."

But in recent years, there has been a push by some members of Congress to change that.

An aide wasn't immediately able to provide details on what shape Delahunt's legislation will take. He was among the sponsors of a 2003 proposal designed to get more companies to collect sales taxes from customers in states where they don't have a physical presence.

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