WebProNews

A new voluntary tax agreement, the Streamlined Sales and Use Tax Agreement between 22 states means consumers could now be charged a sales tax on certain Internet and catalog purchases from businesses in other states.

Some lawmakers in Congress want to create a new tax system in order to have a "level playing field" for shoppers, businesses and governments to help states collect taxes on Internet purchases.

 In a separate measure lawmakers will decide whether to let a temporary ban on Internet-access taxes continue when it expires November 1. If the ban does not continue, it could lead to taxes on broadband, dial-up connections and e-mail accounts.

Supporters of lifting the ban include the Jewelers of America and the E-Fairness Coalition, who say traditional retailers, local governments and states are losing revenue as Internet sales increase.

Those opposed to lifting the ban include the National Taxpayers Union and the Direct Marketing Association, say new taxes are not needed because online consumers already pay a variety of fees.

Consumers who shop online pay fees and other charges for Internet service. Online shoppers also pay shipping fees, which vary due to weight of an item, and shipping methods.

"Given the potentially destructive impact that expanding or raising Internet and telecommunication taxes could have on this important economic sector, the remedy could not be clearer," said Jeff Dircksen, director of congressional analysis for the National Taxpayers Union.  "Congress and the states should declare this tax territory permanently off-limits."