Barbour backs plan to tax online, catalog sales
Published: December 5,2011
Barbour expressed support in a letter last week.
One estimate shows that Mississippi and its local governments will lose more than $300 million in 2012 because such retailers do not collect the state’s 7 percent sales tax. Consumers are supposed to pay use taxes on their state income tax returns, but few do.
The federal bill sets conditions for states to collect the taxes, including providing software and services to Internet and catalog retailers. It could also require Mississippi to direct local sales tax revenue to the place where merchandise or services are delivered. Now, law credits the tax to the place where a business is based.
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