While the loss of Internet retail sales taxes is not currently significant enough to hurt state and local government credit ratings, it could become a problem in the future, Standard & Poor’s said in a report issued Monday.

“Internet commerce is growing faster than overall retail sales, and if trends continue the loss of tax revenue could become significant,” said David Hitchcock, the credit analyst who authored the seven-page report entitled, “Will Internet Sales Taxes Lead to More Revenue for States?”

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