Connecticut has finally resolved its budget battles two months after the start of the state's fiscal year, but, unfortunately for the state's bricks-and-mortar businesses, e-fairness legislation was left on the cutting room floor.
The Center on Budget and Policy Priorities (CBPP) is recommending that states collecting sales tax "give serious consideration" to adopting e-fairness legislation similar to the sales tax laws enacted by New York and Rhode Island.
Earlier this week, the e-fairness provision was left on the cutting room floor as California Gov. Arnold Schwarzenegger agreed with state legislators on a final budget plan, which did not include a provision for sales tax equity.
The fight for sales tax equity continued in several states this week. National retail giants threatened that they would de-list affiliates if legislation enforcing e-fairness was approved, and state legislators continued the difficult task of negotiating budget settlements.
When Rhode Island Gov. Donald Carcieri signed his state's new budget into law on Tuesday, June 30, Rhode Island became the second state to require online retailers with affiliates in the state to collect tax on sales made to in-state residents over the Internet.
With state budget deadlines looming at the end of June and legislatures scrambling to complete their work, the Campaign for E-Fairness is urging booksellers to ramp up efforts in support of pending state legislation that would level the playing field for the collection of sales tax on online sales and ensure the equitable enforcement of existing Internet sales tax laws.
This week, ABA's Campaign for E-Fairness reached critical legislative crossroads in four states where Internet sales tax legislation is under consideration.
In Hawaii, H.B.1405 -- which was introduced in the Hawaii House of Representatives by Rep. Isaac W. Choy (D-24) -- would require out-of-state online retailers with affiliates in the state to collect and remit sales tax. Recently, the bill passed both Hawaii's House and Senate, as reported by the Honolulu Advertiser.
This week, a group of independent trade associations joined to urge Minnesota Gov. Tim Pawlenty to support Internet sales tax legislation included in the omnibus tax bills currently being considered in conference committee.
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Connecticut has finally resolved its budget battles two months after the start of the state's fiscal year, but, unfortunately for the state's bricks-and-mortar businesses, e-fairness legislation was left on the cutting room floor. 
