Consumers Back Internet Sales Tax

Nearly two-thirds of Americans believe Internet sales should be taxed the same as conventional sales, according to a poll conducted by the e-Fair ness Coalition.

The group, representing more than 350,000 local and national retailers, released results of the survey last month in San Fran cisco as the congressionally appointed Advisory Commission on Electronic Commerce (ACEC) began a two-day debate on a draft report that saw no “compelling reason to impose taxes exclusively targeted at electronic commerce.”

The report also stated that policy makers “at all levels of government” should be mindful to respect consumers’ privacy rights, and that no financial or logistical burdens should be imposed on Internet sellers, so as not to “undermine the nation’s global competitiveness” in e-commerce.

The 19-member commission, chaired by Virginia Governor James S. Gilmore III, is scheduled to file its recommendations on Internet sales tax with Congress in April.

Meanwhile, according to the retailers coalition, 63% of the 600 people polled said Internet sales should be taxed the same as conventional sales and if it is, 71% said they would not change their buying habits.

The coalition did not indicate the percentage of those polled that actually shop online.

David Bullington, a founding member of the coalition and vice president of taxes for Wal-Mart, said in a prepared statement, “We don’t support creating new taxes on the Internet, but like most Americans, we believe all sales tax should be equally applied on all commercial transactions, whether they take place online or in a store.”

StrategyOne, a unit of Edelman Public Relations Worldwide, conducted the early-fall survey for ACEC by telephone.