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Warning: Push for Online Sales Tax Coming

AP
November 5, 2014

Advocates for states rights to tax online sales could push through a bill in the next couple of months, the Hill reports.

The bill, known as the Marketplace Fairness Act, has a history of bipartisan Senate support, and its backers have long believed that it is just a matter of time before it gets across the finish line. Now, proponents of the bill have a few reasons to believe that time has come, as Congress prepares for the sort of lame-duck session that is known for deal-making.

The bill would allow online vendors to collect sales taxes from any state in the country, a move supporters say will get rid of the advantage Internet sellers currently have.

Industry groups are planning an all-out advocacy blitz when lawmakers return to Washington next week. The Senate passed the online sales tax bill in May 2013 by a 69-27 margin, but the House hasn’t moved on the measure.

Supporters say they will soon be regulars in both Democratic and Republican offices on both sides of the Capitol. House Republicans historically have been more of an obstacle; even though the Senate has already passed the bill, lobbyists said they might have to focus their attention there to ensure that the House is forced to deal with the matter.

The measure faces opposition from several Republicans, including Sens. Rand Paul (R., Ky.) and Ted Cruz (R., Texas). Senate Minority Leader Mitch McConnell (R., Ky.) voted against the measure in 2013. Speaker of the House John Boehner (R., Ohio) has also voiced his opposition.