• Home
  • News
    • Politics / Govt
    • Legislature
    • Crime / Courts
    • Health / Medicine
    • Archives
  • Sports
    • Badgers
    • Packers
      • Titletown Report
    • Brewers
  • Contact Us
    • Reporters
  • Affiliates
    • Affiliate Support

Wisconsin Radio Network

Wisconsin News and Sports

You are here: Home / Business / Congress grapples with online sales tax

Congress grapples with online sales tax

July 25, 2012 By Andrew Beckett

There’s a renewed push in Congress to require retailers to collect sales taxes for online purchases, and it could mean some changes are in store for Wisconsin consumers who rely heavily on the internet to do their shopping.

Many major retailers are already collecting state and local sales taxes, but it’s largely those that are already physically doing business in a state. On sites like Amazon.com and many smaller retailers though, sales taxes for Wisconsin are not collected. Instead, the burden is currently on consumers to report those purchases on their yearly income tax, which then translates into a use tax assessed by the state.

Proposals in Congress would change that by requiring all businesses to collect those taxes and pass them along to the proper authorities. Dale Knapp with the Wisconsin Taxpayers Alliance says it would bring in additional revenue for the Badger State, although the actual dollar amount is hard to gauge. Knapp says it could be anywhere from between $50 million to $150 million a year.

Many major retailers support the move, although small businesses have voiced opposition. Knapp says that’s largely because tracking, collecting, and paying those taxes could increase their cost of doing business. There’s also the challenge of different tax rates levied by states, counties, and even local municipalities. He says that presents a major financial challenge for smaller retailers, even if technology does exist to help them track the information.

The state does require consumers to pay use taxes for online purchases, but Knapp says there’s no way to tell if people are following through. Most sales data is not made available for the state to track and he says most consumers who do report the information are likely only giving a “rough estimate” of what they are purchasing online.

The issue received a hearing on Capitol Hill this week, although the future of any legislation remains uncertain.

AUDIO: Andrew Beckett reports (1:09)

Share this:

  • Facebook
  • Twitter

Filed Under: Business, News, Taxes



Featured Stories

Future of abortion in Wisconsin hinges on SCOTUS ‘Roe’ decision

Juvenile arrested in connection with death of Lily Peters

Missing Chippewa Falls girl found dead, police seek suspect

Medical marijuana legislation gets public hearing at Capitol

Tommy Thompson announces he will not run for governor

TwitterFacebook

Sports Headlines

Giannis breaks franchise scoring record, Bucks beat Nets in OT

Wisconsin’s Davis declares for NBA Draft

Badgers to face Arizona State in Las Vegas Bowl

Williams likely out for the season with broken hand

Packers releasing TE Jace Sternberger

More Sports

Tweets by @WRN

Get our news delivered to your inbox:

Enter your email address:

Delivered by FeedBurner

Copyright © 2022 · Learfield News & Ag, LLC