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"The Senate, currently debating a budget for the US government, may include a provision to require states to collect sales tax on sales from retailers that do not reside inside their borders. Key members of the Senate are considering adding the bill to the current budget resolution.\r\n\r\nPassing the Senate wouldn't enact the concept into law right away, given the current budget\u00A0climate\u00A0 in Congress, but\u00A0as The Hill notes, &amp;quot;garnering the needed 60 votes for the online sales tax measure would show momentum.&amp;quot;\r\n\r\nChanging the law would allow states to collect far more in sales tax, but would also reduce the competitive advantage that some online retailers enjoy over their physically located rivals.\r\n\r\nTo that end, a group, WE R HERE, representing a coalition of self-described &amp;quot;small business retailers&amp;quot; is piping up against it. In its views, which were emailed to TNW, the bill is essentially\u00A0unconstitutional, and would add such a heavy implementation burden onto small businesses that it would force them to close.\r\n\r\nThe first argument is stronger than the first. Giving states the right - obliation, even - to manage commcerce between states - could abrogate the Commerce\u00A0Clause\u00A0of the Constitution, which reserves that right for Congress. Perhaps they could delegate the authority, but it feels like a legal stretch.\r\n\r\nThe idea that small companies would be drowned in a sea of new red tape isn't precisely scary, as previous iterations of the bill in questions contained carve-outs for firms with less than $500,000 in revenue; the smallest would be protected from compliance costs that they likely couldn't afford.\r\n\r\nAs TNW reported last year when the measure died in Congress:\r\nThe bill would allow states to collect sales tax on all purchases made by its residents, not simply at online retailers that have physical\u00A0presence\u00A0in the state\u2019s borders. The House\u2019s bill on the issue would exempt businesses with less than $500,000 in annual out-of-state sales.\r\nThat would seem to properly protect both Mom and Pop. We'll see if this gets any further. That said, the House might simply oppose it on the grounds that it would in fact increase total government revenue.\r\n\r\nTop Image Credit:\u00A0ttarasiuk"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/insider/2013/03/20/hackels-raised-as-senate-budget-resolution-considers-adding-expanded-online-sales-tax-provision/>