Internet Tax Legislation Is Endorsed By House Lawmakers

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(Host) The Vermont House has endorsed a bill that would allow Vermont to extend its sales tax to retailers that operate online.

Right now, consumers only pay the six percent tax if they buy something at a store in the state, or if they make an online purchase from a company that also operates a store in the state.

Representative Jeff Wilson says the House bill would extend the sales tax to any online retailer that has an affiliate doing business in Vermont.

(Wilson) "Typically, an affiliate is a business that has a business relationship with a cyber-retailer, essentially acting as an in-state sales agent or facilitator for the out-of-state retailer."

(Host) The bill is aimed at companies like Amazon and is fashioned after similar laws in New York, Rhode Island and North Carolina.

Amazon says if it’s enacted, it will end affiliations with any Vermont companies.

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