mr. cerasale, what is your issue? >> guest: the issue really stands from out-of-state marketers when they become sales-tax product is perceived. they have no present in the supreme court has had no because it so complicated it interferes with interstate commerce. and scott's group is trying to simplify, is trying to simplify that. so it exists as a question of can a state forcing out-of-state retailer to become their unpaid collection agent. post goes to your organization does not have a problem with taxing and amazon sale? >> guest: no, taxes are purchased in the collect sales taxes are in fact owed and that is you have to follow the law. that is for the state is. the question is how was it collected and who collects it and so forth. >> host: mr. peterson, do you estimate that states are losing revenue because of internet sales? >> guest: yes, internet and catalog sales. this often awful lot of catalog sales. with sunni states will fail to collect $26 million this year and we are very concerned that with the really s

mr. cerasale, what will we see next? >> guest: i think we will see court decisions. i think what happens in new york, what happens in colorado will then set a new framework a new ground-level of where we are. i think that scott's group will continue to try and get more and more states to join the streamlined sales tax agreement. we will probably fight the mainstream fairness act in congress saying that they really have the streamlined. i like the phrase that does not do anything here. hopefully it's streamlined in name only and goes into more streamlining. i think that eventually as remote sales become larger and larger, it may well be that states will start to streamline more. >> host: final word. >> states won't have any choice. they'll do whatever they have to do. you'll start seeing amazon type stuff everywhere because the internet is truly amazing and it's revolutionized this country and you can't get the bill's tax for the sales tax will die. >> host: this is "the communicators." .peterson with the streamlined sales tax government. jerry cerasale, direct market

mr. cerasale, what are we going to see next? >> guest: i think we're going to see the court decisions. i think that what happens in new york, what happens in colorado will then set a new framework, a new ground level of where we are. i think that scott's group will continue to try and get more and more states to join the streamline sales tax agreement. we will probably fight the main street fairness act bills in congress saying that they really haven't streamlined. we like to use the phrase doesn't have to hit me here, hopefully that it's streamlined in name only and try and go more into streamlining. and i think that eventually as bloat sales -- remote sales become larger and larger it may well be that states will start to streamline more. >> host: final word. same question. >> guest: states won't have any choice. you're going to start seeing amazon type stuff everywhere with because the sphwhert is truly amazing, and it's revolutionizing retailing in this country. if you can't get that sales tax collected, the sales tax will die. >> host: this is "the communicators." scott peterson i

cerasale of the direct marketing association. grant gross of idg news service is our guest reporter. mr. peterson, the state of texas recently sent amazon a bill. what was that about? >> guest: it's about a fulfillment center that amazon has or an affiliate of amazon owns in the state of texas. and generally, it gets down to the physical presence test that the supreme court created. if you have a physical presence in the state, you have an obligation to collect sales tax. we have spent the last 40 years trying to figure out what physical presence means, and we've been to court a thousand times, i suppose, trying to figure that out. what, as i understand it and i have not talked to either texas or amazon, but as i understand it they have a distribution facility or they have an affiliate that has a distribution facility in texas that texas now believes creates a physical presence for amazon this that now -- because they have that presence there, amazon has an obligation to collect sales tax. and not, as i understand on a going forward basis, but texas wants to look back a little bit, too,