Internet Sales Tax Could Bring Millions To Franklin County Coffers

The Marketplace Fairness Act would put an end to tax-free Internet shopping, but it could mean millions of added revenue to Ohio's counties.(Photo: flickr)
The Marketplace Fairness Act would put an end to tax-free Internet shopping, but it could mean millions of added revenue to Ohio's counties.(Photo: flickr)

The U.S. Senate is expected to pass the Marketplace Fairness Act – also being called the Internet sales tax – Monday. The legislation would be the end of tax-free Internet shopping, and it’s proponents say it is will level the playing field between brick and mortar stores and online retailers. Franklin County could receive millions of dollars in additional revenue.

The Marketplace Fairness Act would require companies that do not have a presence in the state it is shipping to, to collect a sales tax from the consumer.
Franklin County Administrator Don Brown said this could mean a boost to the county’s coffers.

“That might generate anywhere from $7 million to $14 million for Franklin County,” he said. “In addition to Franklin County, COTA, the Central Ohio Transit Authority, might expect to collect additional revenues.”

Brown said the additional revenue could help support public services and prevent future increases in county sales tax rates.

“We believe it will go a long way toward covering the cost of services without having to raise sales tax rates by and large.”

Ohio Department of Taxation spokesman Gary Gudmundon said the state would collect the tax and distribute it to counties. He said Ohio expects to receive about $350 million a year from Internet sales alone. The legislation also would tax catalog and phone sales, which are not included in the state’s estimate.

The legislation needs approval from the U.S. House where support for the measure is not as widely supported, as some Republicans see it as a tax increase.

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