Amazon to collect sales tax in Nevada

Gov. Brian Sandoval said Monday that he has reached an agreement with Amazon.com to begin collecting Nevada sales taxes for online purchases.

Sandoval said he also plans to continue pushing Congress to create a system allowing states to collect sales tax revenue from Internet purchases.

"The only way to completely resolve this issue is for Congress to enact legislation that, within a simplified nationwide framework, grants states the right to require collection by all sellers," he said.

Amazon vice president Paul Misener said the company also supports federal legislation permitting interstate sales tax collection "because it is the only way to level the playing field for all sellers, the only way for Nevada to obtain all the sales tax revenue that is already owed, and the only way to fully protect states' rights."

As Internet sales have increased dramatically in recent years, lawmakers nationwide have become increasingly aware of the revenues they are losing through online companies don't have to collect sales taxes. While the issue has been raised repeatedly, Congress has thus far failed to enact legislation.

Sandoval said that under the agreement with the Nevada Department of Taxation, Amazon will voluntarily begin collecting Nevada's sales tax starting Jan. 1, 2014, unless a federal law takes effect earlier.