State will try to delay change in sales tax distribution

Bredesen said he thought he had support in the Legislature to delay the “streamlined” sales tax plan.

“We are looking seriously at submitting legislation that would delay its implementation for a couple of years,” Bredesen said Friday.

The new system would allow Tennessee cities where goods are delivered to collect the sales tax, instead of the tax money going to the city where the purchase occurred.

The change is part of an agreement among many states to help lay the foundation for a consistent sales tax on Internet purchases.

It would increase sales tax collections in some municipalities, while lowering it in others.

In the case of Nashville, there is concern it could cost Nashville $6 million annually if it takes effect July 1, its current start date.

Some legislators and municipal leaders have pressed the governor to reconsider the plan.

Bredesen said it doesn’t appear Congress is going to address the issue anytime soon, and only one state, Kansas, has made the transition to the new collection system.

Bredesen said it was a painful process there, and a two-year delay in Tennessee will allow the state to see how the issue shakes out across the country before implementing it here.