NASHVILLE -- Gov. Bill Haslam said on Wednesday that untaxed Internet sales are eroding Tennessee's tax base and said he's willing to take a leadership role among governors in urging Congress to pass a national approach to collecting sales taxes on goods sold over the Internet.
He said Tennessee is already losing between $300 million and $500 million a year on untaxed Internet sales --- a growing number since the states and Congress have been unable for more than a decade to agree on a "streamlined sales tax" process enabling online retailers to collect taxes easily for the nation's thousands of state and local taxing jurisdictions.
"It's not going to begin eroding the state's tax base; it already is. Something has to happen nationally. The whole streamlined sales tax is a big deal, and I'm more than willing to play a leadership role," Haslam said. "It has to be addressed on a national level or we're going to keep playing these kinds of move-around games."
His remarks were part of a discussion with reporters about an advisory opinion issued by state Atty. Gen. Robert Cooper last week indicating the state legislature could enact a law requiring an online retailer with a physical presence in Tennessee to collect sales tax on items it sells to Tennessee residents and businesses.
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