Mississippi moves to tax internet sales, after long delay

JACKSON, Miss. (AP) – Mississippi’s tax collector will require large online sellers to collect taxes on internet sales, more than 10 months after first proposing the rule.

The state Revenue Department filed notice Wednesday that some companies without in-state locations must collect a 7 percent tax on sales beginning Dec. 1

Revenue Commissioner Herb Frierson acknowledges the rule directly challenges U.S. Supreme Court decisions forbidding states from requiring tax collections by out-of-state sellers. Mississipi’s rule is likely to spark a lawsuit, and Frierson has said he hopes past decisions will be overturned.

Any company marketing to Mississippi customers and making sales of more than $250,000 a year into the state must collect.

On Feb. 1, Amazon.com started voluntarily collecting taxes on Mississippi sales, which could generate $15 million to $30 million yearly in taxes.

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