Courts Approve Internet Sales Tax

The US Supreme Court says states and municipalities may collect sales tax on purchases made on the internet.  However, that does not mean Chillicothe and other cities will begin collecting those taxes immediately.  Chillicothe City Administrator Darin Chappell says when the state legislation catches up with the ruling, Chillicothe will see an additional source of revenue.

Chappell says, for years internet retailers have had an unfair advantage over the brick and mortar stores.

Chappell says this won’t happen overnight.

Experts estimate nationally, states have missed out on sales tax collections ranging from 8 to 33 billion dollars a year.  So what does this mean for cities?  Well, for Overland Park Kansas, they estimate when legislation is in place, they will bring in an additional 2 million dollars.  Those figures are based on the city’s sales tax rate and the amount of internet sales by residents of the city.

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