RALEIGH, (SGRToday.com) - The association that lobbies for local governments is urging its members to advocate for federal legislation that would give states the power to collect sales taxes from entities that do business in the state but don't have a physical presence.

In an "Action Alert" published as part of its recent League Bulletin, the League of Municipalities writes in part:

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"U.S. Rep. Renee Ellmers of North Carolina has joined Rep. Jason Chaffetz (R-UT) to co-sponsor a bill to modernize our nation’s outdated sales tax collection process. The League of Municipalities has sent a letter to Representative Ellmers thanking her for her co-sponsorship of the bill. The League also has sent letters to the other members of North Carolina’s congressional delegation asking them to cosponsor this bill. We need you to do the same.

The Remote Transactions Parity Act (H.R. 2775) would close the online sales tax loophole and level the playing field for the businesses that help build your community, employ local residents and pay local property taxes. As many of you are aware, this federal legislation is not about a new tax or about damaging Internet sales. It is simply about creating a federal mechanism so that states can enforce existing law. This Act will provide local governments with the resources needed to invest in communities, build infrastructure, provide important services like emergency response, and to build on the services that enhance residents’ quality of life and help attract economic development.

Each year, more than $200 million in sales taxes from online purchases goes uncollected in North Carolina. For local governments in the state, the loss amounts to roughly $65 million. Congress can give state and local governments the power to require sellers who do not have a physical presence in their jurisdiction to charge and collect sales taxes."