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Senate Committee Approves Plan for Internet Sales Tax Collection

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RALEIGH — A plan designed to help North Carolina collectsales taxes on Internet purchases has cleared a Senate committee.

Analysts say that without such a plan, the state stands to lose450 million dollars a year in uncollected taxes from Internetand catalogue sales by 2003.

The model legislation would not require Internet vendors tocollect sales tax for the state. Instead, it would make the state'ssales tax laws more uniform.

That would eventually allow the taxes to be collected once otherstates also participating in the project pass similar laws andCongress gives its O.K.

Now, most big Internet retailers voluntarily collect sales taxesfor the states.

But smaller vendors leave it to the buyers to pay the requiredtaxes to the states.