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Internet retail sales tax bill passes House

ND Legislature

The House has passed a bill that could allow North Dakota to start collecting sales tax from some Internet retailers.

The bill requires an on-line retailer to sell at least $100,000 worth of goods to North Dakota customers – or have 200 or more North Dakotans making purchases – before the sales tax can be collected. And it can only happen if the US Supreme Court overturns its decision in the "Quill v. North Dakota" case that prohibited a sales tax on Internet retail sales.

"It levels the playing field for state and local businesses as it relates to the collection of the North Dakota sales tax from sellers that don't have a physical presence in the state of North Dakota," said Rep. Jason Dockter (R-Bismarck).

The bill passed 68 to 23. It returns to the Senate to see if it agrees with House amendments.

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