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.