NASHVILLE, TN (WSMV) -
Gov. Bill Haslam was in Washington, D.C., on Tuesday to discuss a tax bill involving online purchases made in Tennessee.
Haslam spoke in front of the House Judiciary Committee to talk about Tennessee's experience with Amazon.com.
The governor said a 20-year-old Supreme Court decision has set current laws about collecting sales taxes online. He said Tennessee is missing out on $400 million in sales taxes every year.
Haslam wants Congress to allow states to collect sales taxes from companies that don't always have a physical presence in that state.
"That money could fund critical programs that vulnerable citizens rely on. It could cover federal mandates states face or it could go back to the taxpayers in the form of further tax relief," said Haslam.
Tuesday's meeting comes as federal lawmakers discuss passing statutes that would make sure states benefit when purchases are made online.
A new bill would allow states to collect taxes immediately on online transactions, no matter where the retailer is based.
Under current laws, states can only collect sales tax from retailers that have a presence in that state. People who buy items online from another state are supposed to declare the purchase on their tax forms, but many do not.
The state of Tennessee recently reached an agreement with Amazon, which will begin to collect sales taxes from Tennesseans in 2014.
Amazon said it supports federal legislation in order to avoid having to manage different tax laws from state to state.
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