The U.S.
Senate passed legislation last week that could end sales tax free, online
purchases. The
legislation, called the Marketplace
Fairness Act, would require online retailers to collect sales
taxes from customers and send them back to state and local governments. Under current law, sales tax can only
be collected from retailers that have a physical presence in a state. States would be required to provide
software that would calculate the taxes. The bill does not apply to businesses with annual online sales less than $1
million.
The
Marketplace Fairness Act now heads to the U.S. House for consideration where it
faces an uncertain future. President Obama has indicated he would sign the
legislation if passed by both Chambers.