Pennsylvania could be missing out on up to $600 million in sales-tax revenue this year because of items purchased online from out-of-state vendors, according a University of Tennessee study on Internet-related revenue losses.
According to the Pittsburgh Post-Gazette, that potential revenue–though hard to calculate precisely–is rising each year as Internet sales increase. As a result, Pennsylvania could lose $800 million by 2006, if it doesn’t revise its tax laws, convince residents to pay delinquent sales taxes or pursue tax agreements with large online vendors such as Amazon. com.
Despite lobbying from state officials and small business associations, a proposed federal law requiring collection compliance doesn’t figure to become an election-year debate item.
Network
