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Some Chains Charging Internet Sales Tax

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From Associated Press

Some major retailers this week began voluntarily charging online sales taxes in 37 states and the District of Columbia, a move that could reshape the way business is done on the Web.

Nationwide retailers, including Wal-Mart Stores Inc., Toys R Us Inc. and Target Corp., hope they eventually can persuade states to mandate online sales taxes, leveling the playing field against Internet-only rivals.

Under current law, catalog companies and pure online retailers have to charge sales taxes only in states where they have operations. Large retailers say this puts them at a disadvantage in states where catalog and Internet-only companies do not have operations. California is not one of the 37 states.

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