Lawrence photographer Monte Mace received an unpleasant notice when he returned from vacation this summer.

It was from the Kansas Department of Revenue, demanding that he conduct a self-audit of business purchases over the past three years.

The purpose of the audit was to figure out how much tax Mace owed for equipment he bought from out-of-state companies.

The final amount came to approximately $2,000, though there is some disagreement on that number.

Mace said he is steamed about the whole situation.

“I think it’s very unreasonable,” Mace said. “We already pay thousands in sales tax on items that are sold to my clients such as photography, wedding albums, etc.”

Mace’s experience is one of many that has caused a national debate over collecting taxes on items purchased out of state now that Internet shopping has become more routine.

But while the modern computer age has increased out-of-state purchasing, the tax Mace owes is governed by a law dating back to the Great Depression when the state sales tax was established, according to Kansas Secretary of Revenue Joan Wagnon.

Wedding photographer Monte Mace reviews some of his work at his home studio. Mace received a notice from the Kansas Department of Revenue ordering him to pay sales tax for purchases he has made over the Internet. Mace said he orders photo albums and most of his photo gear on the Internet.

“The use tax was enacted in the late 1930s,” Wagnon said. “It was put there to protect Kansas businesses. You don’t want to set up a situation where it is cheaper to buy out of state.”

Mace said he buys much of his specialized equipment from a company in New York because it isn’t available anywhere else. The company doesn’t charge sales tax.

But under Kansas law, those kinds of purchases must be taxed, Wagnon said.

Mace also said he thought the letter demanding a self-audit was somewhat threatening, and he hoped that the revenue agency was treating all industry groups consistently.

He said there is no way he can contest the tax bill because he is too busy running his business.

“It seems to me they want an additional pound of flesh,” he said.

But Wagnon said having businesses audit themselves is less confrontational than if the agency did the audit.

“They have been incredibly useful,” she said of the self-audits. “It educates people on the law, and it allows them to do it without harassing them.”

Wagnon said the self-audits have been going on for three years and have generated $3 million in tax revenues. She said the agency sends out self-audit notices from industry group to industry group.

And while she didn’t know anything specifically about Mace’s case, she said the agency is always willing to work with taxpayers on payment plans.

Wagnon said collection of the use tax may someday be unnecessary if states band together to remit sales taxes.

Kansas is part of a 22-state group that signed the streamlined sales tax pact, which collects taxes from other states and, using tax statements, sends the cash back to the states where the sales were made. New York is not a member of the group.