U.S. one step closer to introducing internet sales tax

By

Matthieu Guinebault

Published
Apr 29, 2013

On May 6, senators are due to vote on legislation that would force internet retailers to collect tax from customers. The idea has support from the White House but certain Republicans are strongly against the move.

The legislation cleared its final procedural hurdle on April 23, where it won a bipartisan Senate vote, 63 to 30. Currently, internet retailers only apply tax on orders in states where the company has a physical presence, be it via a store, warehouse or office.

Some states are against the movement. Oregon, Montana, New Hampshire and Delaware, for example, do not have sales tax. The proposed law exempts companies who do less than one million dollars revenue, though smaller companies are worried about the impact on the new jurisdiction and the changes they are going to have to make.

Online retailers have generated 226 billion dollars in sales in the United States this year, an increase of 16% on the previous year.