Internet Sales Tax Bill Passes Senate, House Expected to Challenge It
May 7, 2013 2:31 PM
comment(s) - last by
House Speaker John Boehner now plans to deliver the bill to the House Judiciary Committee
The Internet sales tax bill
passed with flying colors in the Senate
, but the House of Representatives may prove to be more of an obstacle.
The Senate voted 69-27 in favor of the Internet sales tax bill (also known as the Marketplace Fairness Act) on Monday. The Marketplace Fairness Act would allow states to force out-of-state retailers to collect sales tax on Internet purchases -- even if the e-tailer has no physical presence in that buyer's state.
The legislation offers an exemption for merchants that generate less than $1 million in annual out-of-state revenue.
However, many e-tailers like eBay and Overstock.com oppose the new bill, saying that it would hurt small businesses.
Those who are onboard with the legislation include Amazon, which is looking to simplify its U.S. state sales tax payments, and brick-and-mortar stores like Wal-Mart and Best Buy, which have complained about the unfair advantage online retailers have when it comes to the lack of sales tax collection in certain states.
Also, state government's in need of extra revenue like the idea of the new bill. The California Board of Equalization, for instance, said it made $96.4 million in
sales tax on internet commerce
from September-December 2012, which is the first full quarter that the state started collecting.
Back in April, the Marketplace Fairness Act scored a big victory in a procedural vote of 74-20 in the Senate. It even won backing from U.S. President Barack Obama.
While the Marketplace Fairness Act has had an easy time in the Senate, things are expected to change in the House of Representatives. The issue is that Republicans control the House, and they refuse to consider new federal revenue from eliminating tax breaks (which would be part of tax reform).
House Speaker John Boehner now plans to deliver the bill to the House Judiciary Committee.
This article is over a month old, voting and posting comments is disabled
5/11/2013 9:23:03 PM
If the shopper pays tax for online purchases based on the state tax where the business exists and is to be paid to that state only then would it be fair to online businesses. This idea of online businesses having to deal with state taxes all over the US is insane. Here we have the government making laws on something they know nothing about and what kind of impact this law will have on small online businesses. I guarantee you none of these lawmakers have an online store where they personally would have to deal with the massive headache this would cause. If you went to a physical store in another state, I'm sure you would pay that states sale taxes. Oh, you live in another state, no sales tax for you. Be sure to report it when you file your taxes. Hogwash, get real. Read the first sentence again.
"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner
Senate Votes in Favor of Internet Sales Tax Bill
April 23, 2013, 5:41 AM
California Grabs $96.4 Million in First Round of Online Sales Tax Collection
February 20, 2013, 7:11 PM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information