Apr 22, 2013

Internet Sales Tax on Fast Track

Senate Majority Leader Harry Reid is pushing forward a bill to allow states to tax purchases that are made online, with one vote set for Monday evening.

The Hill reported that Mr. Reid, Nevada Democrat, has filed to end talk on the bill, dubbed the Marketplace Fairness Act because it allows for taxation of online retailers, which are perceived as having an unfair advantage over in-store retailers. And legislative watchers largely expect the measure will fly through the Senate — but not so fast in the House.

Rep. Bob Goodlatte, Virginia Republican and Judiciary Committee chairman, said in The Hill that he will go slow in reviewing the legislation when it’s sent to the House.

“[The bill] still has a long way to go,” Mr. Goodlatte said in The Hill. “There is still not uniformity on definitions and tax rates, so businesses would still be forced to wade through potentially hundreds of tax rates and a host of different tax codes and definitions.”

Existing law only lets states collect sales taxes from those businesses that also have a building or physical facility in the state.

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