Senate to consider ecommerce taxation

Acknowledging the swift growth of Internet sales compared to brick-and-mortar commerce, Senate President Michael Waddoups, R-Taylorsville, said Utah needs to join other states in an effort to collect sales tax on online sales.

Utah lawmakers “do not want to hinder” e-commerce but the reality is, he said, billions of dollars of online sales go untaxed.

“We’re disadvantaging brick-and-mortar stores on Main Street Salt Lake City,” Waddoups said.

Waddoups said the Senate will explore a means to join some 25 other states that part of a compact to streamline the tax collection process.

Sen. Wayne Niederhauser, R-Sandy, said Utahns are now supposed to report Internet purchases on their income tax reforms.

“There’s very low compliance and very high enforcement costs for the states so that states have never enforced it,” he said.

Rep. Wayne Harper, R-West Jordan, has a bill to as he says help Utahns comply with the law.

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