Senate overwhelmingly endorses states' collection of online sales taxes

The Senate overwhelmingly approved an amendment empowering states to collect taxes for online sales, delivering a huge victory to lawmakers and stakeholders who have devoted more than two years to the effort.

Sens. Mike Enzi (R-WY) and Dick Durbin (D-II) watched their amendment sail through the upper chamber on a 75-24 vote, confirming their hunch that their legislation has the support needed to pass outside the budget process. The lawmakers have been seeking a vote on their Marketplace Fairness legislation since last summer and finally got their answer — that there is plenty support for the change in law that will allow states to collect sales tax on purchases made online by consumers in their states. The legislation would exempt small businesses that earn less than $1 million annually from out-of-state sales.