State sales tax on online purchases?

Tools

By Brittany Cooper

TWIN FALLS, Idaho (KMVT-TV) Pat Donnelley is the president of Donnelley Sports, a company founded in 1975. The customer base includes Idaho, Nevada and eastern Oregon.

Donnelley says, "a large part of our business is done through schools and recreation departments. If you talk about the coaches that we deal with, our demographic would be anywhere from 28 to 55 years old."

The company started selling its products online about four years ago.
Donnelley estimates they do about 20% of their business on the world wide web. He's in favor of a uniform state sales tax online.

"When one of our customers goes out of state to purchase something and they don't pay a sales tax, they create a big competitive disadvantage for us because it's a six percent different in price of the product for the customer," says Donnelley.

For Twin Falls Mayor Greg Lanting, it's a fairness issue.

Lanting says, "local businesses, especially small businesses are the bedrock of every community and just unfair to them that they have to sell sales tax and their items and some of the internet companies do not."

Mayor Lanting also adds an online company typically doesn't have to pay for a storefront as well.

"It''s just fairness, if we could get the entire country to start a sales tax, it's just fair to everyone," adds Lanting.

And it doesn't matter if you live in Twin Falls or Burley, if this proposal eventually becomes law, an Idahoan either way is supporting the state's economy.

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