Collecting online sales tax could help state budgets

An editorial from The Herald-Dispatch

HUNTINGTON, W.Va. — With most states struggling for revenue, federal inaction on taxing online sales becomes even harder to understand.

In West Virginia, legislators are trying to find some solution to a $270 million deficit in the budget that begins July 1. In Michigan, the budget hole is twice as large at $480 million. Kentucky is wrestling with millions in cuts for the state’s colleges and universities, and the list goes on.

But meanwhile, every state is missing out on millions in sales tax for products its residents buy online.

These are not “new taxes.” In most states, it is clear that the resident owes the state sales tax whether the product is shipped from Portland, Oregon, or Portland, Maine. But it goes uncollected because Congress has refused to tackle the issue…

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