Reuters: Fight expected in House on online sales tax

The Senate voted overwhelmingly on Monday to give states the power to enforce their sales tax laws on online purchases, but the legislation faces a tougher fight in the Republican-controlled House of Representatives.

The Democratic-controlled Senate voted 69 to 27 to back the measure, which pits brick-and-mortar stores like Wal-Mart Stores Inc and cash-hungry state governments against such Web retailers as eBay Inc and Republicans wary of new tax measures.

“Call me a conservative, but I believe the right approach to tax fairness is to reduce rates — not force higher rates onto others,” said Tom Graves, a House Republican from Georgia.

House Speaker John Boehner plans to send the bill to the House Judiciary Committee, a senior Republican aide said. That will mean hearings ahead. The Senate uncharacteristically bypassed this step.

Judiciary Committee Chairman Robert Goodlatte, a Republican, has reservations about the legislation, including its complexity and potential impact on small businesses, a spokeswoman said.

Goodlatte has yet to schedule any hearings on it, she said.

Backers of the measure include major traditional retailers Wal-Mart andBest Buy Co Inc, as well as e-tailing giant Amazon.com Inc, which wants to simplify its U.S. state sales tax payments.

Opponents include many other online merchants such as eBay, Overstock.com Inc and anti-tax activist Grover Norquist. Lawmakers from states without sales taxes – like Montana, Oregon and New Hampshire – largely oppose the measure.

States that charge sales tax have largely been unable to require e-tailers to collect it from purchasers unless the e-tailer had a physical presence in the state. Otherwise, consumers are supposed to pay the tax, but very few do.

Some states have made separate arrangements with Amazon on the issue, while others have not.

———–

Click below for the full article.

http://www.reuters.com/article/2013/05/07/net-us-usa-tax-internet-idUSBRE9450QZ20130507

Leave a Reply

Your email address will not be published. Required fields are marked *