Senate Passes Online Sales Tax Bill

WASHINGTON — The Senate on Monday passed a bill that would empower states to require businesses with more than $1 million in out-of-state sales to collect taxes for products they sell on the Internet.

The Senate voted 69 to 27 Monday to pass the bill, which next goes to the House, where antitax sentiment among many Republicans may make it difficult to pass. President Obama has conveyed his support for the measure, called the Marketplace Fairness Act.

States currently can only require retailers to collect sales taxes if the merchant has a physical presence in the state.  

Online sales U.S. totaled $226 billion in 2012, but states lost billions of dollars last year because they couldn't collect taxes on out-of-state sales, according to a study done for the National Conference of State Legislatures, which lobbied for the bill.  

If signed into law, the bill would allow for businesses with less than $1 million in online sales to be exempt.

Supporters of the piece of legislation say the bill makes it relatively easy for Internet retailers to comply. States would provide free computer software to help retailers calculate sales taxes, based on where shoppers live, and establish a single entity to receive Internet sales tax revenue, so retailers don't have to send it to individual counties or cities.

Opponents argue the bill would give states too much power to reach across state lines to enforce their tax laws. States could audit out-of-state businesses, impose liens on their property and, ultimately, sue them in state court.

Opponents also say that the bill creates complicated administrative issues, imposing audits, compliance costs and lost wages for small businesses.

In the Senate, lawmakers from three states without sales taxes lead the opposition — Montana, New Hampshire and Oregon. They said that businesses based in their states should not have to collect taxes for other states. Delaware also has sales tax, though its two senators supported the bill.

"We ought to have a structure in place in the states that treats all retail the same," National Retail Federation CEO Matthew Shay said in a statement. "Small retailers are collecting [sales tax] on the first dollar of any sale they make, and it's only fair that other retailers who are selling to those same customers the same product have those same obligations."

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

XBIZ Retreat Concludes With Business, Banter and Beach Vibes

The 2025 XBIZ Retreat in Miami wrapped last week with top vendors and key buyers immersing themselves in business while enjoying a relaxed environment, productive one-on-one meetings, and a dance party.

Kiiroo Unveils 'PowerShot' Stroker

Kiiroo has introduced its PowerShot masturbator.

Fleshlight Debuts Bootydevine Stroker

Fleshlight has introduced its new Pro Fleshlight stroker molded from Bootydevine.

Honey's Place Launches Revamped B2B Website

Pleasure product retailer Honey's Place has launched an updated website for wholesalers at HoneysPlace.com.

Australian eSafety Commissioner Demands Stricter Child Protection Codes

Australia’s online safety regulator, eSafety, is once again reviewing a “final” draft of industry codes to protect children from pornography and other age-inappropriate content, after eSafety Commissioner Julie Inman Grant rejected the previously announced “final” codes as insufficiently stringent.

Playful Icebreakers Spark Serious Business for Miami XBIZ Retreat Attendees

From a casual welcome reception at Miami’s Grand Beach Hotel to a creative speed networking session to break the ice, candid panels, and dozens of creative in-suite product displays, the first two days of XBIZ Retreat blended business, connection, and just the right amount of fun.

Kyrgyzstan Parliament Moves to Outlaw Internet Pornography

A parliamentary committee of the Supreme Council of Kyrgyzstan on Tuesday approved a measure to outlaw online adult content in the country.

A Look at What's Driving the Booming Demand for Imagination-Inspired Sex Toys

It’s a tale as old as time. In childhood, we are captivated by fantasy stories that allow us to escape into a world of make-believe, where anything is possible. For adults, fantasy can also shape sensual experiences, allowing people to be whoever they want, do whatever they wish and go wherever they desire through role-playing — and an expanding array of imagination-inspired pleasure products.

Sweden Bans Purchase of 'Remote' Sexual Services

The Riksdag, Sweden’s parliament, has approved a proposal to criminalize purchasing sexual services performed remotely by streamers and custom content creators.

Frank Lawrence Launches Crowdfunding Campaign for 'Vibrating' Tarot Cards

Publisher/artist Frank Lawrence has launched a crowdfunding campaign to fund his Vibrating Tarot deck.

Show More