The Senate voted 69 to 27 Monday to pass the Marketplace Fairness Act, a bill that gives states the power to collect taxes from Internet sales.
The bill aims to make it so states can collect taxes from retailers that sell products over the Internet, in catalogs and through radio and TV ads. It also makes it so consumers don't need to keep receipts to file those purchases on the 1040 tax returns.
Participating states will be able to provide
free software to online retailers with sales in excess of $1 million, allowing
them to collect the appropriate sales tax at the point of sale, which eliminates the need for customers to report those purchases.
"This bill helps consumers comply with the current tax code by creating an easy, affordable way for online retailers across the country to manage already-owed sales tax, just as neighborhood shops already do with each sale," shared Sen. Mike Johanns in a statement following the bill's passage.
Sen. Deb Fischer agreed, saying, "Government should not be in the business of picking ‘winners' and ‘losers.' By giving online sellers a free pass from collecting state sales tax, the federal government is actively undermining millions of small business owners who invest in our communities and create jobs."
She says that this bill will allow large online retailers to be treated the same as Nebraska's small town retailers.
The bill faces opposition in the House however, where some lawmakers see it as a tax increase.