Eleven independent trade groups joined this week to urge the governors in 44 states that collect sales tax to equitably enforce existing tax laws. The groups stressed that, given the budget shortfalls that most states are facing, now more than ever, it's a state's obligation to ensure sales tax equity by requiring out-of-state retailers with nexus in the state to collect and remit sales tax.

California's Board of Equalization (BOE) and Barnes & Noble have finalized their agreement over sales taxes owed by Barnesandnoble.com. B&N will be required to pay the state approximately $9 million in back taxes, plus penalties and interest, for failure to collect and remit sales tax, as previously reported in Bookselling This Week.

From July 1, 2006, through June 30, 2007, more than $50 million of combined state and local taxes on Internet sales generated by New York City consumers went uncollected, including $29 million in lost New York City revenue, according to the city's Independent Budget Office. The findings are part of the report "E-Commerce: Eroding City's Sales Tax Revenue," released this month.

This month, New York City Mayor Michael Bloomberg came out in favor of New York State's Internet Sales Tax provision, which is currently being challenged in court by Amazon.com and Overstock.com.

The latest column by Wall Street Journal writer Lee Gomes takes a close look at what he characterizes as "an audacious legal strategy Amazon.com has used to avoid collecting sales tax" in some states where it has warehouses or distribution centers.

Last week, New York State asked Overstock.com to consolidate its lawsuit challenging the state's Internet Sales Tax provision with an earlier suit filed by Amazon.com. The case, which will be heard in New York Supreme Court, is slated to begin on Monday, July 7.

In a significant victory for California's independent booksellers, the state's Board of Equalization (BOE) and Barnes & Noble have settled two cases regarding the collection of sales and use taxes on sales made by Barnesandnoble.com. On Thursday, May 29, the California BOE affirmed and approved a settlement that has B&N paying a settlement of approximately $9 million.

As booksellers in New York, Texas, and other states work to advance e-fairness and the equitable collection of sales tax, the issue is gaining national prominence. Here is a recent column from the Wall Street Journal's Lee Gomes, who questions why "Internet moguls should continue to benefit from a tax loophole that hurts parks and schools, and makes it harder for your neighborhood bookstore to keep open for business."

Over the past two months, there have been significant strides in the campaign for e-fairness that have thrust the issue into the media spotlight. To keep the issue on the minds of legislators, the American Booksellers Association is urging booksellers to write, fax, or e-mail their governors about this important issue.

The State of Texas Comptroller's Office is currently investigating whether the presence of an Amazon.com-run distribution facility in the Dallas suburb of Irving means the online retailing giant has a physical presence in the state. If the Comptroller's Office determines that Amazon.com does have nexus, the retailer would be responsible for collecting and remitting sales tax for purchases made by Texas residents and potentially would be liable for back taxes.