Major change in sales tax for on-line shopping - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Major change in sales tax for on-line shopping

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PASCO, Wash.- Retailers get the chance to find out how the state's new Internet sales tax rules will affect them.

For years you've been able to jump on-line here and retailers have either not collected sales tax at all, or collected it based on where they, the company, is located.

The Department of Revenue held a meeting on it Monday in Pasco.

Starting next July, retailers will have to calculate the sales tax based on where you live.

That means tax revenue that used to go to places like Seattle where many of those on-line companies are based, will now come here.

"There's a state sales tax and then there's a local sales tax which the local, department of revenue administers and so we take that and we distribute it out to the different cities, counties," said Allan Lynn with DOR. 

Washington is one of 22 states that's joining this new program.

The Department of Revenue doesn't have an estimate as to how much extra money this will bring in each year, but says it will be coming here.