Analysis: Wisconsin could get $120 million from internet sales taxes

A new analysis shows Wisconsin could rake in an additional $90 million in internet sales taxes this fiscal year if lawmakers decide to start collection this fall.

The U.S. Supreme Court last month upheld South Dakota's plan to collect online sales taxes, clearing the way for other states.

A Legislative Fiscal Bureau analysis released Monday found if Wisconsin legislators made regulatory changes in time to start collection by Oct. 1, the state would take in $90 million by mid-2019 and $120 million the following year.

State law requires an equal cut in income taxes if federal law requires collecting online sales taxes. It's unclear if the court decision technically is a change in federal law, but if Wisconsin implemented collection under 2017 rates taxpayers would save an average $52.

Gov. Scott Walker says any additional sales tax the state collects from online sales will be offset with undetermined tax reductions. He says "one way or the other we'd want to get that back to the hardworking taxpayers."

Walker's Revenue Secretary Rick Chandler said last week his department was still studying the ruling to determine just how much additional money the state may collect, given that not everyone will pay the tax and there may be some exemptions for small sellers.

Chandler says he anticipates it being an issue for the Legislature to tackle in 2019.