Several Governors Want Online Sales Taxes

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Several governors are calling for federal legislation to make online businesses pay a state sales tax. (Photo by Alex Wong/Getty Images)

Several governors are calling for federal legislation to make online businesses pay a state sales tax. (Photo by Alex Wong/Getty Images)

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DES MOINES, Iowa (AP) — Gov. Terry Branstad has joined other governors in calling for the passage of federal legislation requiring online businesses to pay state sales taxes to states choosing to collect them.

The Des Moines Register reports (http://dmreg.co/MStfvL ) Branstad has written a letter to U.S. Sens. Charles Grassley and Tom Harkin asking them to vote for the proposal.

Branstad says since online retailers aren’t required to pay sales tax many local businesses are at a disadvantage because they’re required to collect state and local sales taxes.

Harkin, a Democrat, says he favors the bill. Grassley, a Republican has declined to say whether he would vote for it.

State revenue officials estimate Iowa is missing out on about $14 million a year in tax revenue.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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