Online Retailers Beware: States Broaden the Tax Net

While the stock market has rallied, state tax revenue collections continue to come in at dismal levels compared to a year ago. A recent survey by the nonprofit Nelson A. Rockefeller Institute of Government shows that state income tax revenue in the first four months of 2009 fell 26 percent vs. the same period of 2008. With collections from sales and property tax on the decline, states are under great pressure to raise additional revenue from new sources. One target squarely in the sights of legislators: internet sales.