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Senate passes bill letting states tax online sales

May 6, 2013 • National News


This photo taken May 2, 2013, shows Sarah Davis, co-owner of Fashionphile.com, posing with her bags in a company warehouse in the Carlsbad, Calif. The Internet company sells rare, vintage, and discontinued previous owned bags and is facing the complicated task of dealing with new state regulations on Internet sale taxes. (AP photo/Lenny Ignelzi)

WASHINGTON (AP) — The Senate sided with traditional retailers and financially strapped state and local governments Monday by passing a bill that would widely subject online shopping — for many a largely tax-free frontier — to state sales taxes.

The Senate passed the bill by a vote of 69 to 27, getting support from Republicans and Democrats alike. But opposition from some conservatives who view it as a tax increase will make it a tougher sell in the House. President Barack Obama has conveyed his support for the measure.

Under current law, states can only require retailers to collect sales taxes if the store has a physical presence in the state.

That means big retailers with stores all over the country like Wal-Mart, Best Buy and Target collect sales taxes when Login to read more

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