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Virginia downgrades estimates of online sales tax revenue

Tax officials told lawmakers Monday that the state now estimates it could bring in $165 million a year by forcing online shoppers to pay sales tax. Previous estimates had been at $250 million a year.
Credit: William Potter, Thinkstock

RICHMOND, Va. (AP) — Virginia tax officials have lowered the amount of new revenue the state could bring from expanding sales taxes on items sold online.

Tax officials told lawmakers Monday that the state now estimates it could bring in $165 million a year by forcing online shoppers to pay sales tax. Previous estimates had been at $250 million a year.

The U.S. Supreme Court ruled this summer opened the door for Virginia to collect taxes on online sales involving out-of-state businesses.

Officials said the change in revenue estimates is partly due to some retailers voluntarily starting to collect taxes after the court's June ruling.

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