States Bent On Collecting Internet Taxes

New York and California have added a line on this year's tax forms requiring taxpayers to declare any tax they owe on out-of-state purchases.

Though state revenue agencies similarly sought sales tax on mail-order items before the e-commerce boom of the late 90s, Internet sales have “really shined a spotlight on it and increased the urgency,” said Harley Duncan, executive director of the Federation of Tax Administrators.

By law, residents are supposed to pay sales taxes to their states if they order books, clothing, computers and other items by mail or online from businesses based elsewhere.

Read more at eWeek.