Political pundits expect the Marketplace Fairness Act of 2013 to sail through the Senate with a passing vote as early as this week, sending the bill to the Republican-controlled House. A procedural vote on the bill that occurred Monday had 74 senators in favor and 20 in opposition; this is one vote fewer in favor than last month’s vote to gauge viability of an online sales tax bill. President Obama has also endorsed the bill.
The legislation would allow states to collect taxes on purchases made by their residents from online businesses based in other states. This is provided that the respective state simplifies its sales tax system in order to comply with the act. Under current law, retailers must collect sales taxes only for states where they have a physical presence. Several states seem poised to utilize this legislation if signed into law.
The House is expected to give the bill greater opposition. However, current consensus of the bill passing the House appears to be mixed.
Click here for earlier background on the Marketplace Fairness Act of 2013 covered in the February 28, 2013 Multistate Tax Update.
Click here to read a Q & A on Proposed Internet Sales Tax posted by the Wall Street Journal.