SALES TAX: Branstad Pushes For Online Tax

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The gas tax isn’t the only tax Governor Branstad wants more of next year.

He’s asking Senator Harkin and Senator Grassley to push federal legislation that will make it easier for the state to collect sales tax on all online purchases.

Right now federal law only requires tax to be charged if a store has a physical presence in Iowa allowing retailers like Amazon to sell items tax free.

Branstad and Governors across the country want to see the law changed.

In a letter to Iowa’s Senators¬† Branstad says, “passing [the marketplace fairness act] allows for main street Iowa businesses to be treated more fairly, recognizes the states’ rights to enforce their own tax laws and provides a solution to a long-standing tax loophole.”

Businesses that make less than $500,000 in sales would be given a special exemption under the bill.