ONLINE TAX: Iowa AG Supports Legislation

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Iowa’s Attorney General is supporting a plan to require online merchants to collect sales tax.

Tom Miller has sent a letter of support for the Market Fairness Act to Iowa’s U.S. Senators.

Currently, online businesses that don’t maintain a physical store presence in Iowa, don’t have to charge state sales tax. The new legislation would make online purchases eligible to be taxed.

“It is fundamentally unfair that ‘brick and mortar’ businesses must collect sales tax, while their online competitors collect none,” says Miller. He also says the revenue that would be provided by the tax change is much-needed by the state.

Gov. Terry Branstad supports the plan as well.