AL SJR106

Urges Congress to enact legislation requiring online businesses to collect sales tax at the time and place of sale and remit taxes to states where merchandise is shipped.

Alabama lost an estimated $604,300,000 in untaxed remote sales in 2006, with projected losses growing to $734,400,000 by 2011 according to a University of Tennessee study.

Internet and catalogue sales currently escape Alabama's sales and use tax collection, creating a competitive disadvantage for traditional brick-and-mortar businesses that must collect sales tax.

Alabama residents have a legal obligation to pay use tax on out-of-state purchases, but collection is difficult and ineffective, placing vital state and local services at financial risk.

Directs copies of the resolution to be provided to each member of Alabama's Congressional Delegation.