Is an Internet sales tax coming?

A movement is slowly building in Washington to banish one of the biggest perks of shopping online: not paying sales tax.

That's because the perk has also cost states as much as $23 billion in lost revenue by some estimates, and they want it back.

Rep. Bill Delahunt (D-MA) enlisted South Dakota Gov. Mike Rounds (R) and other state lawmakers to rally support for his proposed Main Street Fairness Act, which would make it easier for states to go after the money. Gov Rounds said that Internet retailers "have a competitive advantage" over in-state businesses, which are required to collect the tax. About 13 states, including Maryland and Virginia, considered bills this year aimed at collecting the tax and employing a variety of strategies, though they met with limited success. Some tried to broaden the definition of the "physical presence" requirement under the Supreme Court ruling to include certain types of advertisers, while others hoped to bill consumers directly for the lost tax. Online retailers that also have brick-and-mortar stores, such as Wal-Mart and Best Buy, already are required to collect sales tax online. But states say a significant number of purchases come from online-only retailers such as Amazon or eBay, which are not required to collect. Delahunt's proposal would essentially give states the blessing to simplify and streamline their tax codes to make it easier for out-of-state retailers (i.e. those on the Internet) to collect the sales tax.

So far, 24 states have already gone through the process, but others have hesitated to undertake the project without congressional authority. The proposal still has a long way to go. Rep Delahunt introduced it on July 1 and it was referred to the House Judiciary Committee. But even if it were to become law tomorrow, states would then have to pass their own legislation simplifying the code. That means any change for you the consumer is still at least a few years out. But no proposal is without opposition.