Study: Ohio stores will lose $137M to online shops

AP News
|
Posted: Dec 14, 2011 3:20 PM
Study: Ohio stores will lose $137M to online shops

A new study asserts that Ohio retailers will lose $137 million in sales this holiday season to online competitors.

The study by the University of Cincinnati's Economics Center says online shops have a competitive advantage because they aren't required to collect sales taxes on purchases made over the Internet.

The analysis also projects that state and local governments will lose about $45.7 million in revenue because aren't required to collect the taxes.

Associate director of research for the economics center Jeff Rexhausen says Ohio retailers could earn more than $600 million annually if online stores were required to collect sales tax on purchases made in Ohio.

The study was commissioned by the Ohio Council of Retail Merchants.