Senate Passes Online Sales Tax Bill

WASHINGTON — The Senate on Monday passed a bill that would empower states to require businesses with more than $1 million in out-of-state sales to collect taxes for products they sell on the Internet.

The Senate voted 69 to 27 Monday to pass the bill, which next goes to the House, where antitax sentiment among many Republicans may make it difficult to pass. President Obama has conveyed his support for the measure, called the Marketplace Fairness Act.

States currently can only require retailers to collect sales taxes if the merchant has a physical presence in the state.  

Online sales U.S. totaled $226 billion in 2012, but states lost billions of dollars last year because they couldn't collect taxes on out-of-state sales, according to a study done for the National Conference of State Legislatures, which lobbied for the bill.  

If signed into law, the bill would allow for businesses with less than $1 million in online sales to be exempt.

Supporters of the piece of legislation say the bill makes it relatively easy for Internet retailers to comply. States would provide free computer software to help retailers calculate sales taxes, based on where shoppers live, and establish a single entity to receive Internet sales tax revenue, so retailers don't have to send it to individual counties or cities.

Opponents argue the bill would give states too much power to reach across state lines to enforce their tax laws. States could audit out-of-state businesses, impose liens on their property and, ultimately, sue them in state court.

Opponents also say that the bill creates complicated administrative issues, imposing audits, compliance costs and lost wages for small businesses.

In the Senate, lawmakers from three states without sales taxes lead the opposition — Montana, New Hampshire and Oregon. They said that businesses based in their states should not have to collect taxes for other states. Delaware also has sales tax, though its two senators supported the bill.

"We ought to have a structure in place in the states that treats all retail the same," National Retail Federation CEO Matthew Shay said in a statement. "Small retailers are collecting [sales tax] on the first dollar of any sale they make, and it's only fair that other retailers who are selling to those same customers the same product have those same obligations."

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Stephen Colbert Takes Aim at Texas' Crackdown on Sex Toys

Stephen Colbert is cracking up over Texas lawmakers’ crackdown on sex toys in the state.

XR Brands 'Silicone Body Forms' Highlighted at Paris Fashion Week

XR Brands’ Ripped Silicone Male Chest and Perky Pair Silicone Breasts were highlighted at 2025 Paris Fashion Week.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Eye of Love Introduces 'Matchmaker Collection' Display Planogram

Eye of Love has debuted a new display planogram for its Matchmaker Collection of pheromone-infused scents.

Fleshlight Debuts Taylor Vixxen Stroker

Fleshlight has introduced its new Pro stroker, molded on the anatomy of Taylor Vixxen.

Orion Expands 'LateX' Collection With 2 New Outfits

Orion Wholesale has added two new outfits to its LateX collection of fetish apparel.

Blush Debuts 'Unicorn Dreams' Vibrator

Blush has introduced the new Unicorn Dreams vibrator from its Play With Me collection.

Ofcom Fines OnlyFans Parent Company Over Inaccurate Age Verification Reporting

U.K. communications regulator Ofcom has fined OnlyFans parent company Fenix International Ltd. $1.36 million for inaccurate reporting of its age verification measures.

Cyberskin Debuts 4 New Strokers

Pleasure brand Cyberskin has introduced four new strokers.

Chappell Roan Gives Shout Out to Womanizer on 'Call Her Daddy' Podcast

Chappell Roan gave a shout-out to Womanizer during her guest appearance on the “Call Her Daddy” podcast, hosted by Alex Cooper.

Show More