OLYMPIA, Wash. - Governor Chris Gregoire signed a measure Thursday that will have Washington join a national push to have Internet and catalog companies collect and distribute sales taxes.

Gregoire says the current system is unfair to brick-and-mortar businesses in the state.

"This bill helps level the playing field between in-state and out-of-state retailers, helps Washington businesses compete with online businesses and it allows us to recover sales taxes from out-of-state retailers," said Governor Gregoire.

Those businesses must collect sales taxes, but out-of-state Internet and catalog companies are not required to do so.

By signing the bill, Washington will join with 21 other states to be a member of the Streamlined Sales Tax Project.

More than 1,000 companies have voluntarily agreed to begin collecting and distributing sales tax to any state that agrees to become a member of the project.

The state Department of Revenue predicts that Washington will initially see an additional $40 million in sales tax by joining.

The bill, SSB 5089, affects internet, catalog and mail order businesses that are not physically located in Washington but sell to customers in the state.