Lawmakers claim momentum in push for Internet sales tax

A bipartisan group of 35 House members and 18 senators introduced legislation that would allow states to tax online purchases.

"This is gaining momentum, and this is the year to do it," Sen. Mike Enzi (R-WY), the lead Senate sponsor, said during a Capitol Hill press conference. Rep. Steve Womack (R-AR), the bill's top author in the House, said he is confident the measure will become law this year. "I have talked to [Senate Majority Leader] Harry Reid [(D-NV)]. Harry Reid wants to bring this to the floor," Sen. Dick Durbin (D-IL) said. Many of the same lawmakers pushed similar legislation last year, but the measures never made it to the floor for a vote. The latest version of the bill, called the Marketplace Fairness Act, combines several proposals from the last Congress and includes revisions aimed at winning over skeptics. The lawmakers argued that their bill would close an unfair loophole that benefits online retailers over local brick-and-mortar stores. The Marketplace Fairness Act would empower states to tax online purchases. The bill would exempt small businesses that earn less than $1 million annually from out-of-state sales — an increase from the $500,000 threshold proposed last year.