Senate Passes Internet Sales Tax Bill
The Senate voted 69 to 27 Monday to pass the Marketplace Fairness Act, a bill that gives states the power to collect taxes from Internet sales.
The bill aims to make it so states can collect taxes from retailers that sell products over the Internet, in catalogs and through radio and TV ads. It also makes it so consumers don't need to keep receipts to file those purchases on the 1040 tax returns.
Participating states will be able to providefree software to online retailers with sales in excess of $1 million, allowingthem to collect the appropriate sales tax at the point of sale, which eliminates the need for customers to report those purchases.
"This bill helps consumerscomply with the current tax code by creating an easy, affordable way for onlineretailers across the country to manage already-owed sales tax, just asneighborhood shops already do with each sale," shared Sen. Mike Johanns in a statement following the bill's passage.
Sen. Deb Fischer agreed, saying, "Government should not be in the business ofpicking ‘winners' and ‘losers.' By giving online sellers a free pass fromcollecting state sales tax, the federal government is actively underminingmillions of small business owners who invest in our communities and createjobs."
She says that this bill will allow large online retailers to be treated the same as Nebraska's small town retailers.
The bill faces opposition in the House however, where some lawmakers see it as a tax increase.