MS House Considers Collecting Tax on Internet Sales to Prop Up Infrastructure
Info Courtesy of The Associated Press
JACKSON –
Mississippi’s House voted on Wednesday to enforce existing tax law regarding the collection of taxes on internet purchases made by Mississippi residents. Under this new proposal, the revenue collected will be earmarked for road and bridge work. By a 79-38 vote, representatives passed House Bill 480, formally codifying efforts to collect taxes from Amazon.com and other vendors that sell goods to Mississippians from outside the state. 70% will go to the state, 15% to counties, and 15 percent% to cities for the infrastructure improvements.
Rep. Trey Lamar, R-Senatobia, emphasized that under current state law, consumers already are supposed to pay use taxes. However, officials have said enforcement on individual consumers is nearly impossible. He emphasized that this is not a new tax, but rather, a way to collect taxes that people were supposed to have been paying all along, and to put them to good use.
Under the latest bill, retailers would be responsible for collecting the online sales taxes. Even without the law in place, Mississippi’s Department of Revenue has proposed rules to collect the taxes, and Amazon.com voluntarily agreed earlier to start collecting taxes Wednesday.