The Walker administration plans to begin collecting on Oct. 1 sales taxes from online retailers with no presence in Wisconsin, a projected $90 million boost to state coffers in the current fiscal year, according to a new LFB memo.
The guv’s office told WisPolitics.com that it plans to use the administrative rules process to begin collecting the tax and is in the process of notifying retailers of the expected Oct. 1 start date.
Gov. Scott Walker’s office also referred to his comments last week that he could look to use the additional sales tax revenue to cut taxes through the state budget.
Today’s Legislative Fiscal Bureau memo laid out the impact of a recent U.S. Supreme Court ruling giving states the power to collect sales taxes from online retailers even if they don’t have a physical presence in their states
Among other things, the LFB said it believes the ruling triggers a 2013 budget provision requiring additional revenue from “any federal law” change pertaining to online sales taxes be used to reduce income taxes. LFB said income tax reductions from that trigger likely couldn’t kick in until at least tax year 2020.
Still, if he wins re-election this fall, Walker could use the next state budget to direct how the additional revenue would be used.
Read more at the WisPolitics.com Budget Blog.