Massachusetts State Treasurer Steve Grossman is pushing for federal legislation to allow states to collect internet sales tax. WAMC’s Paul Tuthill reports
In a letter to Senator Max Baucus, chair of the Senate Committee on Finance, Grossman calls the issue a matter of fairness and equity to Main Street businesses. Its estimated that Massachusetts lost out on $387 million in sales tax revenue last year because state law does not allow it to collect the 6. 25 percent sales tax from online retailers that do not have a physical presence, such as a distribution warehouse in the state. The Massachusetts Retailers Association says the largest share of on line sales, 16 percent, went to Amazon. The Patrick administration has been holding talks with Amazon about the sales tax issue.. Amazon recently opened an office in Cambridge.