Senate Bill Helps States Tax Internet Shopping

Tax-free online transactions in the U.S. could soon be a thing of the past

internet shoppingAttention shoppers: If your state isn’t already taxing all internet purchases, it might begin doing that soon.

The U.S. Senate on Monday will vote on a bill that empowers states to collect taxes on your online shopping spree, reports The Associated Press. The measure is expected to pass the Senate, but it faces opposition from House Republicans who regard it as a tax increase.

Under current law, retailers can only charge sales taxes on internet purchases if their operation has a physical address. So retailers like Walmart, Best Buy and Target often do collect sales taxes for internet online transactions. But retailers like eBay and Amazon do not, except where they have offices or distribution centers.

The measure enjoys broad support in the retail industry. Some are worried that it will become difficult for smaller online businesses without accounting departments to calculate and collect sales taxes for each state that a customer purchases from.

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