Despite the region's thriving e-commerce economy, officials in Renton and Bellevue have joined a national drive to impose sales taxes on Internet retailers. Monday, the two cities endorsed a resolution from the United States Conference of Mayors against extending a moratorium on online sales tax.
Some local governments fear losing tax revenue as more people shop online instead of in stores.
Some elected officials want to make electronic retailers collect sales tax every time a customer places an online order. Online taxes were banned by the Internet Tax Freedom Act of 1998. Its sponsor, U.S. Sen. John McCain, R-Ariz., wanted to help a newborn industry thrive. Under the current system, online sales already are hurting tax-dependent cities, officials say. Traditional retailers such as Wal-Mart, Target, J.C. Penney and Circuit City have allied with the mayors' group, whose members also worry about equity for hometown stores and mall owners.