Federal lawmakers want to tax online transactions

PHOENIX —
About $20 billion in sales taxes go uncollected by out-of-state merchants yearly. Federal lawmakers are inching closer to closing a loophole in federal law which protects online merchants from having to charge sales taxes.

Michelle Ahlmer with the Arizona Retailers Association supports such taxes.

“It means they have a fair playing field. It means that if I go into a store on Main Street that they have a fair, competitive playing field for my business for an identical item found online,” said Ahlmer.

Supporters said states need the flexibility and authority to collect taxes already owed by in-state residents.