Cash-strapped states go online, hoping to tax sales

For years, consumers have counted a legal quirk that allows many Internet retailers to forgo charging sales tax as one of the perks of shopping online. But as states face yawning budget gaps, there is a growing movement to lay claim to the billions of dollars lost through the loophole each year.

In most states, the burden is on shoppers to track what they buy online, calculate the sales tax owed and then pay it. In reality, few consumers fess up — many do not even know such a requirement exists. That will result in $9 billion in unpaid state and local sales taxes this year, according to a study at the University of Tennessee.

By Ylan Q. Mui
Washington Post Staff Writer

Full Story: http://www.washingtonpost.com/wp-dyn/content/article/2010/05/01/AR2010050100246.html?hpid=sec-tech