InformationWeek: Online Sales Tax Edges Closer To Reality

Twenty state legislatures have voted through versions of a multi-state sales tax law that would tax all goods sold to or from these jurisdictions. Now that the 20th state has joined on, pushing the total U.S. population under those states past the 20 percent mark, the pact can now, according to its terms, be enforced.

Much work remains to be done, however, as states must make their tax laws conform to one another, at least in terms of the definitions of products and taxes.

Dianne Hardt, project co-chair and Wisconsin's tax administrator, said that the pact would likely start to work in the second or third quarter of 2004. If it does take effect, online business conducted in those states must either employ a government-certified accounting system, or have its own system similarly certified.