Internet Sales Tax
On May 6, the Senate passed, by a vote of 69 to 27,S. 743, the Marketplace Fairness Act, to give State and local governments the ability to collect sales tax on out-of-State catalog and online sales. The legislation, sponsored by Senators Mike Enzi (WY-R), Dick Durbin (IL-D), and Lamar Alexander (TN-R), would essentially overturn a 1992 Supreme Court ruling (Quill Corp. v. North Dakota) that retailers only need to collect sales and use tax for States where they have a physical presence. Though bipartisan, the legislation is controversial — pitting the brick-and-mortar retail industry and State government representatives against small…
