House panel kills Internet sales tax bill

BOISE (AP) — A plan to tax Internet sales taxes in Idaho has again failed to win over state lawmakers.

The latest push died Wednesday on a 9-9 vote in the House Revenue and Taxation Committee.

Republican Rep. Jeff Nesset was behind the latest push for Idaho to join a national effort to tax Internet sales. He predicted the state could collect some $35 million a year by collecting sales tax on out-of-state Internet purchases.

Supporters say it could also level the playing field for Idaho's brick-and-mortar businesses, which must collect sales tax when they make a sale. Idahoans are required to report online purchases and pay taxes on them each year, though few do.

But critics, including Republican Rep. Lenore Barrett, remain unconvinced and argued against the effort to expand tax collection.