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- THE WEEK, Page 29BUSINESSLook Out, L.L. Bean
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- Mail-order houses keep dodging tax-hungry state legislators
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- Attention, catalog shoppers: No new sales taxes. For now.
- Thrifty consumers who bought more than $183 billion worth of
- merchandise by mail last year welcomed last week's Supreme Court
- decision not to allow state taxation of out-of-state mail-order
- sales. But in rebuffing North Dakota's effort to collect a use
- tax from the Quill Corp. of Lincolnshire, Ill., the nation's
- largest mail-order office-product supplier, the high court
- punted the issue back to Congress and cleared the way for future
- legislative action authorizing states to impose use taxes on
- out-of-state consumers.
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- Cash-hungry state officials will lobby hard for new laws
- forcing mail-order companies to collect taxes from out-of-state
- customers; the state-government lobby claims that this would add
- $3 billion to their coffers this year. If permitted, California
- could have raked in $417.8 million in mail-order sales taxes
- last year alone. But this is a tough sell in an election year
- when jittery lawmakers get plenty of mail from catalog-shopping
- constituents. As Representative Byron Dorgan of North Dakota put
- it, "The large catalog companies have the ability -- and they've
- done it in the past -- to wallpaper the Congress with millions
- of postcards." Direct mail, after all, is their business.
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