Over the past several years, Congress has debated the application of state sales taxes on goods purchased via the Internet. Unfortunately, little action has resulted from this debate, to the detriment of state budgets and particularly local merchants who are penalized rather than rewarded for an actual presence in communities.

National estimates indicate that states will lose between $21 billion and $34 billion in uncollected taxes. For Maryland, collecting sales tax on Internet purchases could yield additional revenue estimated to be in excess of $200 million annually, which the state sorely needs to bring budgets into balance given the lagging condition of our local economy and continued structural deficit.

Without this revenue, which is rightfully owed to the state, programs such as Medicaid, K-12 education and our transportation infrastructure needs will be unmet without additional tax increases. I personally know several Montgomery County elementary education teachers who have forgone a salary increase for the past few years.

More importantly, though, such a policy change would level a slanted playing field for bricks and mortar retailers who invest in our local communities and currently charge and collect taxes on sales via the Internet. The effects of this situation are more profound than the simple 6 percent cost differential of the sales tax, but also include compliance costs that industry experts estimate at 3 percent above collected taxes. In essence, local retailers are penalized for collecting their share of the state sales tax obligation and for their contributions toward making our communities more vibrant.

In 2004, the Maryland General Assembly passed the Streamline Sales and Use Tax Agreement, contingent upon federal action on the Internet sales tax issue. Regrettably, Congress has not taken action to remedy this inequity.

Moving forward, however, our federal representatives and Congress as an institution should end this debate and do what’s right for state governments and more importantly for countless mom-and-pop retailers that serve as the backbone of our nation’s economy.

Ian C. Kelly, Silver Spring

The letter writer is immediate past governmental relations chair for the Maryland International Council of Shopping Centers.