Patrick wants to expand Internet sales tax

The Associated Press
Published: January 6, 2009

BOSTON—Gov. Deval Patrick wants to expand the state’s ability to collect taxes on Internet sales to help make up for an estimated $1 billion budget shortfall.

The Boston Globe reports Tuesday that the state could collect up to $15 million more per year under a plan submitted to the Legislature by Revenue Commissioner Navjeet Bal. The administration is asking lawmakers to approve the plan by the end of this year.

Currently, only Internet retailers with in-state locations, including stores and warehouses, collect sales taxes on purchases by Massachusetts residents.

The proposal would expand that to collect taxes from Internet retailers that have agreed to participate in a multistate compact.

Opponents say the plan would unfairly burden Internet retailers.