According to CNet…
The U.S. Senate on Monday approved a controversial bill by more than a 2-to-1 margin that would allow states to levy taxes on Internet purchases.
The Marketplace Fairness Act, which would allow states to require online vendors to collect sales and use tax on certain out-of-state purchases, was approved in a bipartisan vote of 69 to 27. The bill, which already has the support of President Obama, will now move on to the House of Representatives.
If approved, the bill would overturn a 1992 Supreme Court ruling that found out-of-state retailers generally don’t have to collect taxes unless they have a sufficient business presence. The bill, officially known as S.743, does include an exception for businesses that make under $1 million a year in revenue.
I’ve written about the Marketplace Fairness Act in the past. The push to tax has come from two fronts. First large businesses, especially those with a brick and mortar presence who are already paying taxes. Second local governments have been pushing to increase tax base. The push against the tax has come from small businesses and entrepreneurs – and I suppose folks who harken back to the early days of the Internet when there was a feeling of wilderness and self-policing.
