Legislators balked Wednesday at the idea of lowering income taxes if Arizona can start getting online retailers to begin collecting state sales taxes.
HB 2465 would require the Department of Revenue to determine how much more is coming into the state treasury if Congress approves the Marketplace Fairness Act. That measure is designed to say if a company makes a sale through phone calls or the Internet it must collect the sales tax due in the state where the customer is located.
Rep. J.D. Mesnard, R-Chandler, said his measure ensures the state gets no windfall once Internet taxes start flowing. Foes in general were opposed to having the state effectively forego the revenues which it is already is legally entitled to collect but has no effective way of doing it.
Mesnard may try to resurrect the plan despite the 31-27 vote against it.