The net may get a sales tax after all. Louisiana Congressman Billy Tauzin has told an investor conference in Washington that Congress will respect the right of state and local governments to tax e-commerce. I think e-commerce is going to have to share revenues with local jurisdictions, just as brick-and-mortar businesses must, Tauzin explained. Last year Congress imposed a three-year moratorium on new net taxes while a specially created commission examined the issue in depth. States and counties want revenues on internet sales, and want to prevent internet tax avoidance from undermining their tax base. Stacked as it is with technology and internet advocates, the commission is not perceived to be representative of state and county interests. Could that be why a legislative solution is back on Tauzin’s agenda?
