Collins, King support measure allowing states to tax online sales
Maine Sens. Susan Collins and Angus King voted with the majority in a 74-20 U.S. Senate vote Monday on a bill that would allow states to collect sales taxes from online retailers.
The measure, known as The Marketplace Fairness Act, closes a loophole that favors large online businesses over local businesses where sales taxes are paid at the point of sale. It still faces a vote in the U.S. House of Representatives.
The Portland Press Herald reported today that 1st District Rep. Chellie Pingree, D-Maine, and Republican Gov. Paul LePage also support allowing states to collect sales taxes on Internet purchases, while 2nd District Rep. Mike Michaud, D-Maine, is still reviewing the issue.
The newspaper reported that in 2011, about 9.5% of Maine tax filers reported and paid "use tax" for out-of-state purchases. That brought in about $2.8 million in revenue, according to Maine Revenue Services.
If Congress eventually authorizes tax collections from online and catalog purchases, the newspaper cited the benefit to Maine could range between $15 million to $28 million, citing estimates provided by the Maine Revenue Services and a study by University of Maine economist Todd Gabe.
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