Internet Sales Tax Issue Will Get Debate

Idaho lawmakers will at least debate joining the nationwide effort to tax Internet sales following a 12-6 vote in favor of introducing the measure in the House Revenue and Taxation Committee. Wednesday's vote brings the bill just as far as it made it during the 2010 Legislature, before it died on a deadlocked committee vote. In fact, four similar measures have died in the House since 2007. Right now, if you're a business that doesn't have an actual bricks and mortar location in Idaho, you don't have to collect sales tax for this state -- even if the buyer of your product lives here. Buyers are supposed to report those Internet transactions on their Idaho tax forms, but the Idaho State Tax Commission says that's rarely happening. Proponents say this will help Idaho businesses compete with some of their online competitors that currently aren't charging a sales tax.