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State Senate Passes Bill to Tax Internet Sales

By Mark Scott

Albany, NY – The Republican-led State Senate unanimously passed a bill Tuesday authorizing the state to collect sales taxes on Internet purchases.

Majority Leader Joseph Bruno said if passed, the bill would enable New York to join a multi-state project that's trying to devise a way to allow states with varying sales tax rates to charge a single uniform sales tax for Internet purchases.

Bruno said the lost tax revenue is starting to mount.

The estimated loss in New York State, according to a study by the University of Tennessee, will approach $1 billion this year," Bruno said. "We're due that money, but we're not collecting it."

Bruno said collecting taxes from online sales could provide the state with an injection of much-needed recurring revenues that would help avert future cuts in education and health care.