House Will Not Take Up Internet Sales Tax Bill

Date: November 12, 2014

No Action In House Despite Bipartisan Support In Senate

A spokesman for House Speaker John Boehner
announced on Monday that the House would not take up a bill, known as the
Marketplace Fairness Act, before the end of the current Congress this year. The
bill, which would give states the ability to force non-exempt out-of-state businesses
to collect sales taxes on internet sales, had previously passed the Senate on a
bi-partisan 69-27 vote, but the measure has gained little traction in the House.

What This Means For Small Business:

The
Marketplace Fairness Act has the backing of brick-and-mortar retailers, who are
required to collect and remit sales taxes from customers who purchase products
in their stores. It is also supported by some large internet retailers who are already
required to collect taxes in states where they have a physical presence.  On
the other hand, it is opposed by many smaller internet retailers who see
implementing a sales tax system as overly complicated. Such legislation is also
opposed by a number of conservative and anti-tax groups.

What This Means Going Forward:

Despite
the word out of the Speaker’s office, some business groups are still hoping to
pass the bill before the end of the year , perhaps by attaching it to another
piece of legislation. In addition, Congress will likely continue to debate this
issue next year, with a host of new legislators and priorities.

Additional Reading:

Roll Call and the Washington
Free Beacon

both report on Boehner’s move, while ComputerWorld and Fox News look at opposition among tax
groups.

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