Best Buy CEO: Online retailers should collect state sales taxes

The chief executive of consumer electronics retailer Best Buy said Tuesday that he hopes Congress this year enacts legislation requiring all online retailers to collect state sales taxes.

Speaking at the Economic Club of Minnesota, Best Buy CEO Hubert Joly called on the U.S. House to join the Senate in passing a bill mandating sales tax collections.

Best Buy has long pushed for federal legislation requiring online retailers to charge the taxes that bricks and mortar retailers have to collect from customers. Joly said the company always adds applicable sales taxes to online purchases. But he objects that rivals such as Amazon.com can skip the taxes.

"States can decide to lower the taxes. But we don't think the government should pick the winners," Joly said. "We don't think the government should subsidize Amazon and eBay."

Minnesota loses an estimated $400 million a year in uncollected sales taxes for online, catalogue and other purchases made state residents.

"If you buy from an out-of-state seller, like Amazon, today, Amazon is not collecting the sales tax," Joly said. "So, that's an 8 to 10 percent advantage that they have."

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