Setback for online sales tax effort

Lawmakers and industry groups who support online sales tax legislation are hopeful that they can get it passed despite a setback in Congress.

Advocates for the sales tax measure had wanted to link it to a ban on taxing Internet access. But lawmakers did not take that step, instead crafting a conference report for a customs bill that would extend the ban on Internet access taxes indefinitely — but do nothing on the sales tax issue. Supporters of online sales tax legislation want the Senate to strip the access tax language from the conference report, but the effort appears to face an uphill climb.

Conference reports generally cannot be changed on the floor. A senator could raise a point of order that the Internet access taxes ban is not germane, which, if successful, would send the report back to the House without the moratorium. A point of order can be waived with 60 votes.