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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