Tax on out-of-state internet sales coming in Kansas

Kansas businesses may not have to compete against online retailers much longer.

People in Kansas have to pay state sales tax at six and a half percent, but not all out of state internet purchases have had that charge.

“The main street retailer in Kansas being at such a competitive disadvantage and when you figure state and local rates you could have a ten percent differential, and that makes a difference,” Department of Revenue Secretary Mark Burghart.

The state will require out-of-state internet purchases to be taxed as well. Now supporters say in-state and out-of-state businesses will be on the same playing field.

“Companies are systematically soliciting customers from Kansas and to the disadvantage of in-state companies and to the state of Kansas because revenue is not being properly collected,” Burghart said.

Burghart said this could add $20 million to $40 million in state revenue. This comes after last year’s Wayfair v. South Dakota Supreme Court case allowing state taxes on internet sales.