Senate votes 75-22 to advance online sales tax bill

The Senate took a second procedural step on a bill that would allow states to collect online sales tax. In a 75-22 vote, the Senate proceeded to The Marketplace Fairness Act, S. 743, which would empower states to collect taxes on purchases made online by consumers in their states. The latest vote suggests supporters of the bill are likely to see it win approval in the Senate later this week.

Its path through the House, despite the support of many GOP governors, is less clear. Senators in states without a sales tax voiced opposition to the bill, arguing it would burden retailers in their states by forcing them to collect taxes for other state governments. “This legislation would impose new burdens on small businesses not only in New Hampshire but actually across the country,” Sen. Jeanne Shaheen (D-NH) said. “Small businesses across the country — not just in non-sales tax states, such as New Hampshire, but small businesses across the country — will see their tax burdens increase.” Those supporting the bill have called it a “states’ rights bill” because it would allow states — many of which are battling large budget deficits — to collect the revenue they need to fund state programs.