Categorized | Grizzly Lounge

Internet Sales Tax Passes Senate

So, this outta help out our struggling economy, no?:

The Senate passed a bill Monday night aimed at making it easier for states to collect sales taxes for online purchases, its final prospects uncertain.

But small online retailers are already thinking about the bill’s impact on their operations…

The act would overturn decades-long precedent and leave many small online sellers with the task of figuring out how to manage collecting and remitting sales tax to nearly every state.


A 1992 Supreme Court case ruled that states could only require businesses to collect sales tax if the business had a physical presence in the state, such as a store or warehouse. Out-of-state retailers — back then the likes of catalogs more than websites — did not have to collect sales tax because it was deemed too difficult for them to abide by so many different tax jurisdictions and rules.

Now that online shopping has grown into a $226 billion-a-year business, and software makes collecting online sales tax across states easier, proponents of the Marketplace Fairness Act say requiring online businesses to comply with the same rules as bricks-and-mortar businesses is long overdue. The act would also require states to simplify their tax codes and provide retailers the software to assist in tax collection at no charge.

Ted Cruz spoke to Neil Cavuto about the bill earlier today:

Here’s the roll call of the vote.

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  • Quiet_Righty

    Crossing my fingers that it will die in the House.

    • ryukidn

      Don’t just cross those fingers, let them do the walking … call your reps!! Tell them he** NO! Not only do they not need to tax online companies, they need to STOP taxing ALL companies! The cost of taxation & compliance is passed to us at the register, so that could help prices. The company resources freed can be applied to innovation & job creation. And, most importantly, it’ll be the start of getting the companies OUT of the gov’t, and the gov’t out of the companies!

      • Quiet_Righty

        I have sent a message via Twitter to Rep. Scott Peters of the 52nd District in CA. He’s a Democrat from California, so I expect nothing positive for my effort.

  • AyePatriot

    Article 1 – Section 7.1

    "All bills for raising revenue shall originate in the House of Representatives"

    What am I missing?

    • lanahi

      You just miss the fact that Republicans in the House are letting the matter go without protest.

      They can do it in the Senate…because, well, they can.

      Over 9600 jurisdictions throughout the nation…that’s what the small internet business would have to put up with! Great for the economy, right?/sarc

      This is big business joined with government…the definition of crony capitalism!

    • ryukidn

      Good point … you’re apparently only missing the lawsuit that MUST be filed by online companies all over the country! If it’s good enough to fight Obamacare, it’s definitely worthy to beat back taxation!

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