Possible New Internet Sales Tax Law Hits Snag

Gov. Bill Haslam

Gov. Bill Haslam says the state’s move to require all major online vendors to collect sales taxes on purchases made in Tennessee has drawn a legal challenge.
Under current federal law, states are only allowed to require sales taxes to be collected by companies that also have a physical presence within the state. The Haslam tax rule extends that requirement to all retailers with sales of more than $500,000 per year in Tennessee.
The Republican governor says the legal challenge was filed late last week after the state sent out notices to companies about the change.
Haslam spokeswoman Jennifer Donnals says the challenge was filed with the state Revenue Department, but that all details about the petitioner or the petition itself are covered by state confidentiality laws.