Sales tax solution

The Coeur d'Alene bookstore manager smiled grimly when asked about business over the holidays.

"Down," the manager acknowledged bitterly.

Because people aren't reading as much?

"Because people are buying books online," the manager said.

One of the reasons people are buying books - and just about everything else under the sun - online is because of convenience. You don't need to get dressed, pack up the kids and secure the house to turn your computer on.

But another reason is cost. Smart online shoppers can trim or avoid shipping expense. And not only is gas and wear and tear on the family truckster averted, but your purchase is electronically rung up free of sales tax.

We don't think that's right. We don't think it's fair for the merchants who must charge extra and then dutifully collect sales tax on their goods. And we're concerned that unless e-commerce is taxed just as more traditional transactions are, ultimately, vital public services will suffer or the tax burden will be shifted to places where it will hurt more.

Research shows that state and local governments rely on sales tax revenues for one third to one half of their operating funds. That money then supports schools, police departments, fire departments, public libraries and more.

To avoid massive cuts in those services, a shift in the burden likely would increase income taxes, property taxes or perhaps even utilities. Without sales tax on e-commerce, those with the money to make online purchases would be forcing others to make up the difference or suffer diminished services.

The spiral dwindles even further. If that Coeur d'Alene bookseller goes out of business, several jobs are lost. The vacant building lowers property values; property taxes tumble, creating an even greater revenue loss.

Is this the exciting new way of doing business so many are embracing?

We fully understand that creating and enforcing an electronic sales tax collection system for interstate commerce will not be easy. But e-vendors are enjoying a patently unfair business advantage today, one which will lead to higher taxes or slashed essential services tomorrow.

We implore legislators to make this issue a priority this session. A vital state revenue source, jobs and equitable business practices all hang in the balance.