Key lawmaker: House will be 'more thoughtful' on Internet sales tax

House Judiciary Committee Chairman Bob Goodlatte (R-VA) said his panel would take a "more thoughtful" approach to legislation allowing states to force retailers to collect sales taxes on Internet purchases. His comments signaled that momentum from the easy passage of the bill in the Senate won't lead to quick House action on the controversial issue. Chairman Goodlatte said he has problems with the proposed Marketplace Fairness Act, and criticized the Senate for bypassing the committee process by taking the bill straight to the floor.

He understands the concerns of conventional retailers that they are competing with Internet sellers who do not have to collect sales tax. But he said the bill's process for collecting sales tax for hundreds of different jurisdictions and then remitting payments needed to be simplified. Chairman Goodlatte has also echoed concerns of some conservative opponents of the bill that it could set a precedent for states to collect other taxes, such as income or business-use levies, from people or companies outside their borders. "I am open to considering legislation concerning this topic, but these issues, along with others, would certainly have to be addressed," Chairman Goodlatte said. "The committee will also look at alternatives that could enable states to collect sales tax revenues without opening the door to aggressive state action against out-of-state companies.”