There's an item in the Democrats' version of the state budget that would have everyone paying sales tax when internet shopping.

Wisconsin residents are supposed to pay the sales tax now on items purchased over the internet by declaring it on their taxes. Not many do.

Meredith Helgerson at the Revenue Department says the budget proposal puts the onus on the cyber-retailer requiring them to collect taxes on items sold to Wisconsin residents.

Internet companies say sale taxes are different in each state so they don't bother to collect them. But that would change under the proposal.

Helgerson says, Wisconsin would join fifteen other states that have worked out an agreement with major internet and catalogue retailers on which items would be taxed.

In return for clearing up the confusion the twelve hundred companies have voluntarily agreed to include state sales tax on their invoices.

Helgerson says it this levels the playing field for "brick and mortar" businesses in the state that are required now to pay sales tax on items sold.

AUDIO: Jim Dick reports ( 1:15 MP3 )

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