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>Senate bill powers up state online sales taxes

>Senate bill powers up state online sales taxes
By Patrick Temple-West
WASHINGTON | Tue Nov 8, 2011 7:18pm EST

(Reuters) – State governments would be able to collect online sales taxes under a bill due to be introduced in the Senate on Wednesday, said sources familiar with the bill.

Supporters of the online sales tax collection requirement include Wal-Mart Stores Inc, Target Corp and other “big box” retailers who argue they are at a disadvantage against online-only competitors.

A bipartisan group of up to seven senators will introduce the bill, which is broader than similar legislation introduced in the Senate in July. The new bill will differ from a bill in the House of Representatives by affecting more small businesses under a lower exemption threshold, the sources said.

State and local governments support the upcoming bill even more than earlier measures.

Retailers have been exempted from collecting taxes on sales in states where they do not have a physical presence since a 1992 Supreme Court case — before the advent of e-commerce.

https://www.reuters.com/article/2011/11/09/us-usa-salestax-idUSTRE7A801H20111109

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