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The Associated Press January 30, 2012, 12:45PM ET

Idaho governor supports Internet sales tax

Gov. C.L. "Butch" Otter backs taxing Internet sales to level the playing field between virtual businesses and brick-and-mortar establishments on Idaho's Main Street.

Otter made the remarks to Idaho chamber of commerce leaders meeting in Boise on Monday.

Past efforts to deepen Idaho's involvement with a national movement to tax Internet sales have foundered in the House Revenue and Taxation Committee, whose anti-tax conservatives have killed previous proposals.

Idaho has a use tax, meaning everybody who buys over the Internet is required to report them to the State Tax Commission when they pay their annual income taxes.

However, few people actually report them.

Some estimate Idaho loses tens of millions annually in revenue, hurting schools and Main Street businesses whose products cost more because they're required to submit sales taxes.

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