Out-Of-State Pol Urges Pa. To Tax Out-Of-State Purchases

HARRISBURG (CBS) - The chairman of the Pennsylvania Appropriations Committee said lawmakers will take a serious look at an effort by a group of states to collect taxes on residents' purchases made online or from other retailers located out-of-state.

Iowa State Representative Christopher Rants, former Iowa state House Speaker, appeared before Pennsylvania lawmakers to discuss a compact of states that are trying to address the issues raised by a U.S. Supreme Court ruling that said requiring out-of-state retailers to collect sales taxes created an undue burden. He said Pennsylvania is missing out on $700 million a year. "We can no longer afford to let taxes that are owed go uncollected. That's looking at it from a government standpoint," Rants said.

The private sector argument is that in-state businesses that must collect sales taxes are at a competitive disadvantage. Mr. Rants said computer technology has made it much easier for out-of-state businesses to comply and that the states are working on another issue raised by the high court – streamlining their definitions of taxable items. Until that is resolved and Congress approves, the compact states are collecting a fraction of the taxes they are owed through a voluntary program.

Reported by Tony Romeo, KYW Newsradio