A bill that paves the way for the state to begin charging sales tax on online purchases cleared the legislature's Finance, Revenue and Bonding Committee this afternoon.
Connecticut, like many cash-strapped states, is contemplating a law to tax online retailers as a way to bring in revenue while providing parity with "bricks-and-mortar" businesses.
But Gov. Dannel P. Malloy's point man on taxes, Department of Revenue Services Commissioner Kevin Sullivan, testified against the measure at a hearing last month.
Sullivan told lawmakers the administration supports the "policy reasons" behind the bill but said the logistics need to be worked out.
A chief concern is the impact any tax would have on the online retailers state-based affiliates. Several of those affiliates testified that such a tax would be devastating to their business.