Kansas AG: New policy for taxing online sales is invalid

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TOPEKA, Kan. (AP) -

Kansas Attorney General Derek Schmidt has issued a legal opinion declaring that a new and aggressive state policy for taxing online sales is invalid.

Top Republicans in the GOP-controlled Legislature immediately demanded Monday that Democratic Gov. Laura Kelly require the Department of Revenue to rescind the policy.

The department issued a notice in August saying any "remote seller" doing business with Kansas residents must collect state and local sales taxes and forward the revenues to the state, starting Tuesday. It cited a U.S. Supreme Court decision last year allowing states to collect such taxes.

The GOP attorney general said the department didn't have the authority to impose such a policy through a notice.

Legislators included provisions on taxing internet sales in two tax-cutting bills this year, but Kelly vetoed both.