Hingham, Mass. – Building #19, a closeout retailer with 10 stores in Massachusetts and New Hampshire, is reportedly planning a giant closeout...
As I write this, the Senate just voted 74-20 to take up the Marketplace Fairness Act for debate and amendment, the bill's first procedural hurdle. The bill would empower states to require online retailers to collect state and local sales taxes for purchases. The taxes would be remitted to the state where the customer lives. Under current law, states can only require retailers to collect sales taxes if they have a physical presence in the state.
Online sales are soaring. State budget deficits are growing. And tax-free internet sales are once again in the spotlight. Congress is considering bills that would level the playing field by allowing states to require all online merchants doing business in that state to collect sales tax. Web retailers have largely had a free ride since a 1992 Supreme Court ruling that only merchants with a physical presence in a state are responsible for collecting sales tax.