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Senate defeats bill to expand state sales-tax collection from out-of-state sellers
Summary
After debate about legal risk and potential revenue, the Utah Senate rejected Senate Bill 204, a measure to authorize collection of sales tax from out-of-state catalog and mail-order sellers; sponsors said collections could reach millions but legal challenges were expected.
Senate Bill 204, a measure aimed at enabling collection of sales taxes from out-of-state catalog and mail-order sellers, failed on a roll-call vote after extended floor debate. Senator Dixie Levin, speaking for the bill, argued the tax already exists in statute but is not being consistently collected from remote sellers and pointed to litigation and state action elsewhere. Levin estimated current collections from a few catalog sellers at about $95,000 annually and said that if the measure were enforceable statewide the state could eventually realize “as much as $12,000,000” in…
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