Internet Sales Tax Laws

Senate Passes Internet Sales Tax Bill

Faces opposition in the House


The Senate has passed a bill that could end tax-free shopping on the Internet for many shoppers.

The Senate voted 69 to 27 Monday to pass the bill, sending it to the House where it faces opposition from some lawmakers who regard it as a tax increase.

The bill 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, in catalogs and through radio and TV ads. Under the legislation, the sales taxes would be sent to the states where a shopper lives.

NEXT: Sentence Reductions Begin in Calif. Due to Three-Strikes Law Reform

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. Yeah, in high-tax states like CA it’s always enjoyable to stiff the gov’t for their cut.
    But I pity the accounting depts in the e-retailers trying to keep track of the west podunk school district’s ‘temporary’ 3/4% adder.

  2. In the Denver area we have a 1.1% tax to support the Retarded Transportation District. It is literally impossible to map where the tax applies by any other means than an old fashioned flat “picture” map. Two houses in the same zip code, with the same city and street name can be mixed – one exempt from the tax and the other subject to it. There is literally NO way to digitally figure that tax. Our solution is elegant – EVERYBODY pays the damn tax. NOW – multiply that by several thousand taxing districts. We will be using a sales tax service like Avalara if the thing ever takes effect. That, of course, will cut into our profit and force us to raise prices.

Please to post comments

Comments are closed.