Congress Battles Over Online Sales Tax
Washington – Both houses of Congress are currently reviewing the Marketplace Fairness Act of 2013. The Marketplace Fairness Act would give states the authority to require remote sellers with more than $1million in total remote sales in the preceding calendar year to collect their state’s sales and use tax on sales to customers. It identifies minimum simplification requirements a state must enact before it can require remote sellers to collect its sales and use tax, making it easier for the remote sellers to comply with laws of multiple states.
Despite the bills many detractors, the Senate voted 74-20 to take up the legislation for debate and amendment. Under the bill, online retailers would collect an estimated $22 billion to $24 billion that now goes uncollected. A final vote is expected in the Senate by the end of the week. When the House will take up the issue is uncertain.