Senate Passes Online Sales Tax Legislation

Thursday, May 30, 2013 - 11:33

The Marketplace Fairness Act, a bill that would help states to collect taxes on purchases made by residents online, has passed the Senate by a vote of 69-27. The proposed legislation would affect many users of some of the internet’s largest online marketplaces, but would not affect smaller online retailers, as there is a minimum $1 million out-of-state threshold—meaning you probably won’t ever be paying sales tax for purchases like the novelty t-shirt you bought from that obscure boutique the other day.

Many of the internet’s largest online retailers already collect sales tax from customers who live in states where sales tax applies: if you live in a state where Amazon has warehouses, you’re already paying sales tax on your purchases from the retailer. Netflix, Apple’s iTunes, and several other retailers do as well.

More information: Marketplace Fairness