Online sales tax law overdue

The Tampa Tribune: The state of New York now has a battle-tested template for Florida legislators to follow if they want to boost the state’s tax base by millions of dollars each year.

New York has a law on the books aimed at getting some Internet retailers to remit state sales taxes, no matter where the online company’s headquarters are located. If an out-of-state retailer pays a go-between in New York to refer customers to that retailer’s site, they are required to charge and remit state sales taxes to New York.

Online companies Amazon and Overstock.com challenged the law in court and lost. The U.S. Supreme Court declined to hear the case, essentially upholding the law.

Florida lawmakers should consider similar legislation during their session this spring. Although it won’t affect every online company with Florida sales, it will put the state on the right path.

Substantial revenue

Florida, by some estimates, misses out on between $200 million and $800 million in online sales tax revenues a year.

Despite that substantial sum, Florida lawmakers have refused over the years to enact legislation that would position the state to collect the sales taxes. Opponents make the false claim that collecting online sales tax would amount to a tax increase on Floridians.