Report: Wis. misses $150M in taxes on Web sales
GREEN BAY, Wis. (AP) — Shopping online can spare the consumer the hassle of long lines, but it also often means no sales taxes for the state.
There are no federal regulations requiring businesses to collect sales tax on out-of-state purchases, so the amount of uncollected revenue grows as online shopping becomes more popular.
The Green Bay Press-Gazette reports the Wisconsin Department of Revenue estimates the state loses out on $150 million each year in sales taxes it’s unable to collect from Internet sales and catalog purchases made by Wisconsin consumers who order items from out-of-state.
Nationwide, it is estimated that states collectively lose about $8.7 billion from uncollected sales taxes on online sales.
Republican Gov.-elect Scott Walker says it’s a national problem that needs a solution from Washington.