The Senate voted late Monday to require e-commerce businesses to collect sales taxes from buyers. The Marketplace Fairness Act may bring as much as $23 billion, by one estimate, in online sales tax revenue to states and cities. It faces an uncertain future in the House.
The day is inching closer when consumers will have to pay state and local sales taxes on goods they purchase on the Internet.
The US Senate late Monday approved legislation to require any e-commerce business with more than $1 million in annual sales to collect a sales tax if the goods are delivered to a state that would normally charge such a tax. The Marketplace Fairness Act (MFA), which cleared the Senate by a vote of 69 to 27, now goes to the House.
Getting the legislation through the House, however, will be more difficult because a key Republican lawmaker, Rep. Bob Goodlatte (R) of Virginia, chairman of the House Judiciary Committee, has his doubts about the Senate version. Despite bipartisan support, the legislation will still have to pass through his committee – if or when he decides to allow a vote on it.
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