It has been a while since we have heard much about the so called ‘Internet Sales Tax’ or more accurately, the Marketplace Fairness Act. It passed the Senate back in 2013, but was never taken up by the Republican controlled House (because it had little to no chance of passing). The bill would give states the ability to put sales taxes on e-commerce transactions.
Of course, those of us who do business online would be required to collect those taxes and submit them, causing an added layer of complexity. Even if individual marketers didn’t have to deal with the hassle themselves, it would still add complexity and cost to the whole online sales process.
The bill is being taken up again by the Senate, with support from the Budget Committee Chairman, Senator Mike Enzi (R-WY) as well as the Minority Whip Dick Durbin (D-IL).
In response to this move, Joe Rinzel, Senior Vice President for Government Affairs at the Retail Industry Leaders Association said, “Ending the special tax treatment afforded to online-only retailers has been a top legislative priority for the retail industry, and it is time to finish the job in 2015. All retailers deserve a fair shot to compete in the free market without the government’s thumb on the scale.”
“This is a very important thing to level the playing field for all the retailers,” Luke Kenley, an Indiana Republican who chairs the state Senate Appropriations Committee, said Thursday.
While it currently seems unlikely that it will pass either the Senate or the House, it is good to keep an eye on these types of bills as they could have a significant impact on the way business is done online.
