Reeves kills bill to collect online tax

Published: Feb. 27, 2017 at 3:59 PM CST
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Lt. Gov. Tate Reeves says the Mississippi Senate will kill House legislation that would enforce taxation on Internet sales and earmark the money for road and bridge work.

Reeves told reporters Monday that House Bill 480 will die in committee Tuesday, at the deadline for committees to act on bills originating in the opposite chamber.

Reeves says he opposes the bill because it defies decades of U.S. Supreme Court precedent saying states can't tax sales from companies without an in-state presence. He also says the measure would divert $40 million in existing taxes already collected in Mississippi.

That doesn't mean Mississippi will cease trying to tax all Internet sales. Revenue Commissioner Herb Frierson proposes requiring all large sellers to collect taxes, after getting to start collecting voluntarily.