States, Retailers Push to End Online Tax Loophole

ST. PAUL  (AP) - If you buy a book, TV, computer or some other taxable item at a store in Minnesota, you'll pay sales tax of about 7 percent. Shop for the same item on the Internet, and it's not hard to find a merchant that doesn't charge sales taxes.

An alliance of cash-strapped states and angry retailers is trying to close a loophole that lets online sales escape state sales taxes.

Best Buy, Target and other chains are lining up behind a bill to allow states
to require all online retailers to collect sales taxes. The states hope to recover an estimated $23 billion in taxes that now go uncollected.

Officials say lost sales tax revenue costs Minnesota as much as $400 million a year.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)