Wednesday, September 5, 2012

Another State Looks for Revenue from Online Sales


Pennsylvania's push to force online retailers to collect sales taxes has hit serious pay dirt — a commitment to do so by Internet giant Amazon.com Inc. — but the struggle is far from over.
Gov. Tom Corbett is eager to collect tens of millions of dollars in new state revenue without technically raising taxes. But consumers still look for tax-free merchandise on the Internet and sellers are happy to fill the orders, pocketing profits while Pennsylvania's bricks-and-mortar retailers are sandbagged by taxes they cannot evade.
Saturday was the deadline for online retailers to register with the state Revenue Department and begin collecting the 6 percent state tax on orders shipped to Pennsylvania — plus local sales taxes of 2 percent in Philadelphia and 1 percent in Pittsburgh — or face potential audits and penalties like in-state merchants.
Officials expect stepped-up compliance to generate $43 million for Pennsylvania's battered state treasury during the 10 months left in the fiscal year that ends June 30.