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Report: Wis. misses $150M in taxes on Web sales

By ASSOCIATED PRESS   Sunday, November 28, 2010 - 12:51 p.m.
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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.




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(27)
legendre
Nov 29, 2010 at 10:56 a.m.
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Minan, you are starting to sound like a conservative. I think Walker would agree with you!

gpawcat
Nov 29, 2010 at 8:07 a.m.
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"state loses out on $150 million each year in sales taxes". Not true! You can't lose what you never had.

The money won't disappear, it stays in the community, instead of going to Madison.

Lar80
Nov 29, 2010 at 6:15 a.m.
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It's my money!

The state misses nothing.

End of line.

Sigma40
Nov 29, 2010 at 6:03 a.m.
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This sounds like a ploy to get more sales brought back locally.

Phynque
Nov 29, 2010 at 5:19 a.m.
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Well, there is already a law that puts sales tax on 'out of state' and internet purchases when the product is brought into Wisconsin. It is called the use tax and there is a line on your Wisconsin Income tax form to report it.

At this point paying it is an 'honor' system and each individual who purchases web items is required to track, report and pay this use tax when filing their return. Sadly, less than 1% do, so there is the 'missing' tax revenue for the State.

legendre
Nov 29, 2010 at 12:37 a.m.
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I just love the headline. WI "misses" 150 mill in taxes on web sales. You see this is media bias. Only a biased writer would phrase it that way if they believe that money BELONGS to the government first and is being "missed." These associated press writers, I swear they must be campaigning for jobs with the democratic party.

booch11
Nov 29, 2010 at 12:06 a.m.
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facts101,
i don't smoke -- luckily i get to save that cash.
the tobacco tax is truly a tax on the working class.
the rich can afford to pay 8 bucks a pack.
folks can't -- thanks jimmy d.
you should be thankful you don't live in new york -- 11 a pack out there.
buy them online or roll your own.
a friend of mine rolls his -- you can buy pre-made filters and everything.
pennies on the dollar.

kettleblack
Nov 28, 2010 at 11:58 p.m.
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Hey, pending Gov... It's not a "problem" and don't go looking to Washington to "fix" it. Taxed Enough Already... ring a bell?

facts101
Nov 28, 2010 at 11:53 p.m.
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booch11 Oh but thats a sin tax and only affects smokers so it really was not raised on everyone. As a smoker I feel the pain and buy my smokes in Ill.

slantbob
Nov 28, 2010 at 8:26 p.m.
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By cutting spending Walker will essentially raise taxes. When the amount of funding for education and local services gets cut the local tax levies will go up and your property tax bill will increase.

booch11
Nov 28, 2010 at 8:01 p.m.
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facts101,
jimmy raised plenty of taxes -- ask smokers for one.

facts101
Nov 28, 2010 at 7:58 p.m.
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Wishfullthinking Won't happen the Tavern League is almost as powerful as the teachers unions.
booch11 Jimmy never raised taxes but he made sure them silly fees increased every year. Fee's = taxes except in Jimmys mind.

dkush21
Nov 28, 2010 at 7:52 p.m.
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NO MORE TAXES!!!! We are taxed on everything. Enough already. Start curbing your wasteful spending!

booch11
Nov 28, 2010 at 7:50 p.m.
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mooser,
what do you mean?
walker won't raise taxes -- he'll cut sending.
do you prefer a return to the ways of jimmy doyle?
if simply answering a question makes walker a bad governor elect, what does it make jimmy d who promised time and time again to never raise taxes (but did the opposite time and time again)?
please explain your position.

prevention
Nov 28, 2010 at 7:16 p.m.
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And it is now just a huge deal? That's a lot of money to help out us commoners. JMO

Wishfullthinking
Nov 28, 2010 at 6:05 p.m.
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Well they have taxed the hell out of the smokers how about stepping up the tax on booze.

mentor397
Nov 28, 2010 at 5:53 p.m.
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Sigh. We need to stop looking for extra revenue and start looking at cutting spending. Extra revenue isn't free - it's the same thing as a tax, whether it's sales taxes, excise taxes, user fees, registration fees, property taxes, or sin taxes. You take money from people who would otherwise spend it and use it to fund government programs.

Given our anti-business status anyway, do we really want to drive more companies away anyway?

zythia13
Nov 28, 2010 at 5:35 p.m.
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what would happen for online sales sites is that they would be required to have software and personnel in place that would take care of that tax. eBay, for example, would be an easy fix. Each user would just be charged sales tax and probably an additional 2 percent service charge or something like that -- by ebay itself -- not from each seller. ebay would do the filing for each state's tax and the individual seller would be off the hook for keeping track. Some sites already work like that.

eatlessmovemore
Nov 28, 2010 at 5:07 p.m.
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All local business owners - To level the playing field, stop collecting and submitting state and county taxes!!!!

Badgerlvr
Nov 28, 2010 at 4:08 p.m.
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Why do we need a solution from Washington. I thought the recent elections were about "too much government" interfering with our lives. If this attitude continues, we'll soon be taxed for our thoughts.

genrene
Nov 28, 2010 at 3:32 p.m.
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I wonder how long before they want to tax eBay purchases too. How would the "common" person charge for/keep track and then submit sales tax for each state since each state is different?

Sigma40
Nov 28, 2010 at 1:18 p.m.
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Good. We pay too much tax already. The state already screwed us over with vehicle registration. We never used to have to pay sales tax when registering when you purchased out of state... now you do. What a bunch of crooks.

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