Maryland to estimate impact of Internet sales tax

ANNAPOLIS, Md. (AP) - Maryland officials are working on a study to find out just how much tax revenue the state is losing to Internet sales and what could be done to recapture the money.

Gov. Martin O'Malley asked Comptroller Peter Franchot to study the issue in an April letter, and the comptroller asked the Maryland bureau of Revenue Estimates last month to prepare the study.

The study will estimate the volume of Internet sales that take place annually in Maryland as well as their estimated percentage of total retail sales. The study also will try to estimate how much tax revenue loss is due to sales by online retailers. Recent developments in the Internet sales market also will be explored, including the expanding market for digital goods.