Iowa Gov. Terry Branstad has a joined a growing list of other GOP and Democratic governors nationwide who have endorsed the idea of collecting sales taxes for online purchases, according to the Des Moines Register
In a recent letter to the state’s U.S. senators, Chuck Grassley and Tom Harkin, the Republican asked them to support the Marketplace Fairness Act, a Senate bill that would ensure that state online sales tax collections are enforced across the country.
It’s unclear where Republican Grassley stands on bill, but Democrat Harkin told the Register he intends to vote for it.
In announcing his support for online sales taxes, Branstad called the Internet a “robust, mature, and dynamic marketplace that does not warrant special protections.”
“The application of sales taxes only to ‘brick and mortar’ retailers, many of which are small businesses, puts those very entities at a competitive disadvantage,” he said.
Iowa officials told the Register the state is missing out on at least $27 million a year in revenues that could be collected if the same state-wide tax on purchases were applied to Internet sales.
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