Momentum is building for legislation that would impose sales taxes on more online retailers.
The Marketplace Fairness Act, recently reintroduced in Congress, would allow states to collect sales taxes from online retailers for transactions within the state. It provides an exemption for businesses with less than $1 million in annual domestic sales.
Internet sellers have dodged sales taxes for years under a 1992 Supreme Court decision exempting merchants from collections in states where they lack a “physical presence.”
But now the tide is turning as Internet giants like Amazon.com continue to avoid state sales tax collectors. The movement to level the playing field for brick-and-mortar businesses has support on both sides of the aisle.