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VOL. 35 | NO. 32 | Friday, August 12, 2011
Statewide
Corker: Federal regs on online taxes 3-4 years off
CARTHAGE (AP) — Republican U.S. Sen. Bob Corker said Tuesday that could be three or four years before Congress passes national guidelines on tax collections by online retailers like Amazon.com.
Corker told reporters after a speech to the Smith County Chamber of Commerce that he understands the complaints of local retailers.
"The brick and mortar stores have turned out to be places where people look at the product and try it on and see if it works for them," he said. "And then they go to the Internet and actually buy the product with sales taxes.
"Obviously that's unfair."
Questions about online sales taxes have come into focus in Tennessee after the state last year struck a deal with Amazon to waive the requirement for the online retailer to collect the taxes on distribution centers being built in the state.
Amazon has said it expects to create 1,200 full-time jobs in Bradley and Hamilton counties, and the company has since announced it will build another facility in Lebanon.
A University of Tennessee study has estimated that the state will lose a total of $411 million in sales taxes from online sales in the current budget year.
Amazon lobbyist have said they are willing to collect the taxes once national standards are established, but threatened to abandon projects in Tennessee and elsewhere if states unilaterally required them to collect the tax.
Gov. Bill Haslam has said he wants to take a lead crafting a national standard, and has expressed optimism about such an arrangement coming into force soon. But Corker said he had not yet spoken with his fellow Republican about those aims.
"He has not mentioned that he may be taking the leadership, but we both have had a lot going on," Corker said.
The senator and governor were scheduled to dine together later Tuesday, and Corker said he "wouldn't be surprised" if the matter came up.
Haslam's office didn't immediately return messages seeking comment.