The ongoing debate in collecting, and reporting on, sales tax, continues. According to an article in the Deseret News, Utah State Tax Commissioner R. Bruce Johnson told Congress that allowing states to tax only those businesses that have a physical presence within their boundaries doesn’t make sense now because many sales are made via the Internet.

Johnson’s testimony is related to H.R. 1083, requiring physical presence as a condition for collecting specific sales taxes.

“Reasonable nexus standards must take that into account,” Johnson said. “That is why the current nexus standard for sales tax collection, requiring a physical presence to justify taxation, is not appropriate in the new millennium for either sales taxes or income taxes. Economic presence, taking into account appropriate apportionment formulae, is the fair way to establish basis for collection and payment of tax.”

According to the article, Johnson urged Congress in general to empower states to decide for themselves how to tax businesses operating there.