Since Internet sales became popular, some brick-and-mortar retailers have been disgruntled because online retailers often aren’t required to collect sales and use tax. According to AccountingWeb, traditional retailers complained their online counterparts gained an unfair advantage as a result.
In July, the U.S. Senate introduced Senate bill (SB) 2609, known as the Marketplace and Internet Tax Fairness Act, to give states more governance to collect sales and use tax for online purchases. According to AccountingWeb, one provision says, “States can require a remote seller to collect sales and use taxes only if the seller’s gross annual receipts in total U.S. remote sales for the prior year are more than $1 million.”
“This bill signals that leveling the playing field for all retailers is a top priority for Congress this year,” Michael Kercheval, president and CEO of the International Council of Shopping Centers, said in a prepared statement, according to the source.
The Washington Post reported a similar bill was introduced in 2013 but was not passed in the U.S. House of Representatives. SB 2609 includes legislation that would prohibit taxing Internet access, a provision that will likely aid in the bill’s approval. At the moment, it faces little opposition, according to the Post, indicating remote sellers may soon have new tax compliance obligations.
