Marketplace Fairness Act Aims to Include Sales Tax to Online PurchasesMarch 16, 2012 — 1,480 views
Recent internet sales tax legislation called the Marketplace Fairness Act strives to give states authority to require online retailers such as Amazon to collect and remit state sales taxes in order to give online and brick-and-mortar businesses operational equality.
As expected, the legislation is highly supported by a majority of retailers working out of physical locations. The S. 1832 bill could result in more money flowing into community retailers' pockets, as well as increase a state government's treasury balance. The National Conference of State Legislatures estimate online sales cost states approximately $23 billion in tax revenue in 2012, reports the Memphis Daily News.
Updates to the bill include remitting sales tax exemption for business that make less than $500,000 annually to prevent damaging new business growth and leave small retailers on sites such as eBay alone.
So far, many online businesses have expressed discontent or else have outright moved to publicly discredit the bill as damaging to the economy. Known as the Amazon tax bill, the online retailer giant is just one company not in favor of the purposed legislation.
So far, the bill has gained much bipartisan support. However, lawmakers are still unable to craft an encompassing ruling due to the complicated sales tax codes currently in place.