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Online sales tax cheating is rampant, Gov. Herbert says

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SALT LAKE CITY -- It's estimated 1.6 percent of Americans don't cheat on their taxes.

That leaves about 98 percent of people who Governing.com says are being honest on their taxes.

The rest of us are cheating, according to Utah Governor Gary Herbert, though he thinks the federal government should take a lot of the blame.

"We would not tolerate anybody cheating on their income taxes, we should not tolerate people cheating on the sales tax portion of their obligation," Herbert said.

Most states require sales tax be paid, but the burden on calculating those taxes is on the consumer, who would need to track their online purchases and then submit documentation to the state along with payment of those owed taxes each year. It's a process many tax payers apparently don't bother to keep up with.

Herbert says the federal government needs to take on the issue that robs state coffers of 180 million dollars a year, but Utah legislators will debate state measures that would require online retailers to charge state sales taxes if the federal government doesn't.

6 comments

  • FinnyWiggen

    You sound like you believe you are entitled to this money. Yes the state requires funding, but you need to leave your oversized sense of entitlement at the door, and act a little more grateful. You serve us, not the other way around my dear Governor.

  • Anotherbob

    With how much we get screwed with our taxes and all of the wasteful spending, many feel it’s nice to catch a break. They need to realize though sales tax can make or break a purchase, they can’t accurately say how much they are losing because you can’t assume an online purchase with no sales tax would equate to one with it, some people would simply not be able to afford items online if forced to pay the tax. If they want people to pay they need to simplify the tax code, get rid of all the countless jurisdiction codes and go with a universal rate for online purchases.

  • Daniel Gray

    Ok Gov…federal law clearly says that unless there is a brick and mortar presence of the company inside the state, then the residents of that state DO NOT HAVE TO PAY A SALES TAX! get that through your head as under the Commerce clause of the US Constitution, when a local or state law is in violation of a federal law, then the federal law is supreme and the local or state law is null and void. So how do you like them apples Gov?

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