ANAHEIM

An Internet sales task force has submitted a report to the City Council recommending federal legislation that would require Internet retailers to collect sales taxes.

Current laws do not mandate that all Internet retailers collect sales taxes. The task force was created to investigate how the loss of Internet sales taxes could affect the city. The task force concluded that so far, the city had not suffered. Sales tax revenue increased in Anaheim from $31.2 million in fiscal year 1992-93 to $42.5 million in fiscal year 1998-99. But the task force warned that a drop in economic activity and the growth of e-commerce could reduce local sales tax revenues.