Allocation of future Internet sales tax approved

Senators passed a bill May 21 that allocates potential tax revenue derived from Internet transactions.

Federal legislation to authorize states to collect sales tax on all Internet transactions is currently pending. LB200, introduced by Hyannis Sen. Al Davis, allocates the first year of sales tax revenue on such transactions to the state’s Property Tax Credit Cash Fund upon approval of the federal legislation.

The provisions of the bill terminate three years after the bill’s effective date.

The bill passed on a 47-0 vote.