Alaska Attorney General Urges Opposition to Internet Sales Tax Collection Legislation

Alaska’s Attorney General has signed onto a letter urging Congressional opposition to a bill that would allow states to collect sales taxes on purchases made over the internet. Michael Geraghty claims the legislation would prompt years of “costly, protracted and unnecessary litigation”. The internet tax bill was approved last month by the Senate and is now before the U.S. House of Representatives. The letter, which was also signed by the Attorney’s General for Montana and Oregon, was sent to all 435-members of the House on Wednesday. The bill would allow states to require retailers to collect taxes on sales of products purchased by online shoppers. At the moment states are only allowed to require retailers to collect sales taxes if they have a physical presence in the state. Supporters of the legislation believe it would level the playing field between online companies that don’t collect sales taxes and traditional companies that must collect sales taxes if they are in effect in the state where the company is located. That would apply to all of the states except for Alaska, Montana, Oregon, Delaware and New Hampshire, which are the only states without a state sales tax.