AGs Urge House to Oppose Online Sales Tax

The attorney generals from three states without sales taxes are urging U.S. House representatives to oppose an Internet tax bill that has already passed the Senate.

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by Associated Press

HELENA, MT- The attorney generala from three states without sales taxes are urging U.S. House representatives to oppose an internet tax bill that has already passed the Senate.
   
The bill could require retailers to collect taxes on Internet sales and send the proceeds to the states where the shoppers live.
   
Tim Fox of Montana, Michael Geraghty of Alaska and Ellen Rosenblum of Oregon sent a letter Wednesday to all 435 House members saying the bill has legal and economic pitfalls.
   
They claim the bill is unconstitutional because it allows states to collect taxes from retailers that have little or no contact with that state.
   
They also say it is overly burdensome for retailers.
   
Currently, states can only require retailers to collect sales taxes if they have a physical presence in the state.