With the tax deadline set for Tuesday, we’re finding few Nebraskans are claiming internet purchases where there no sales tax collected. It basically works on the honor system. Right now, the state has no way to verify what you bought online.
According to figures from the Nebraska Department of Revenue, 5,318 tax returns have claimed internet purchases on the tax return. It’s less than 1% participation rate.
“We were hoping to double the numbers,” said Nebraska Tax Commissioner Doug Ewald.
Last year was the first time the Consumer Use Tax was included on the Nebraska tax form.
Experts say Amazon.com has been one of the major hold-outs when it comes collecting sales tax at the time of the purchase.
Many internet companies collect the tax and then forward the revenue to the state.
As of Friday, Nebraska had collected $226,263 in internet taxes.
Currently, federal legislation is working its way through Congress to address the discrepancy where internet businesses do not collect the tax.
Some national organizations have forecast Nebraska’s lost revenue in the $80-120-million range annually.