Many consumers have enjoyed the benefits of being able to shop online with sellers such as Amazon and eBay with excellent savings and avoid high sales tax amount that would be incurred in regular brick and mortar retail stores companies. States have been complaining about millions of dollars in lost revenue stream from those sales taxes being lost.
Online retailers have been battling this competitive advantage and they say the consumer should be reporting their purchases and paying taxes directly to the government when hey do their taxes. However, most consumer do not report purchases either through willful neglect or a simple innocent ignorance to the fact that they are required to do so. So the States want the taxes to be charged by online retailers such as Amazon right from the purchase.
Well, the Senate has now just voted 69-27 in favor of the Marketplace Fairness Act, a bill that would make internet retailers collect out-of-state sales taxes that Americans are already obligated to pay, but rarely do under a current system that puts the responsibility on unaware buyers as we mentioned previously. However, the bill has yet to be passed through the House of Representatives. In order to become law, Congress will have to also agree on the matter. However, with less term times than their Senate counterparts and a public response that may be upset to any related to more taxes we believe the House may be a harder sell for this bill. However, if it manages to pass in the House and the President signs it into law we could be looking at a possible tax changes to online sales by sometime in 2014.