Kokomo Tribune; Kokomo, Indiana

Bonus content

May 6, 2013

Senate bill lets states tax Internet purchases

WASHINGTON (AP) — Attention online shoppers: The days of tax-free shopping on the Internet may soon end for many of you.

The Senate is scheduled to vote Monday on a bill that would empower states to collect sales taxes for purchases made over the Internet. The measure is expected to pass because it has already survived three procedural votes. But it faces opposition in the House, where some Republicans regard it as a tax increase. A broad coalition of retailers is lobbying in favor of it.

Under current law, states can only require retailers to collect sales taxes if the store has a physical presence in the state.

That means big retailers with stores all over the country like Walmart, Best Buy and Target collect sales taxes when they sell goods over the Internet. But online retailers like eBay and Amazon don't have to collect sales taxes, except in states where they have offices or distribution centers.

As a result, many online sales are tax-free, giving Internet retailers an advantage over brick-and-mortar stores.

The bill would empower states to require businesses to collect taxes for products they sell on the Internet, in catalogs and through radio and TV ads. Under the legislation, the sales taxes would be sent to the states where a shopper lives.

The measure pits brick-and-mortar stores against online services.

As Internet sales have grown, "It's putting pressure on the brick-and-mortar competitors and it's putting pressure on state and local sales tax revenues," said David French, senior vice president of government relations for the National Retail Federation. "It's time for Congress to create a level playing field so that all retailers are treated fairly."

On the other side, eBay says the bill doesn't do enough to protect small businesses. Businesses with less than $1 million in online sales would be exempt. EBay wants to exempt businesses with up to $10 million in sales or fewer than 50 employees.

 

1
Text Only | Photo Reprints
Bonus content
  • Film Summer Preview - 10 Indies-6 [Duplicate] Summer movie preview: 10 anticipated indies NEW YORK (AP) — More exotic creatures thrive in the shadows of summer blockbusters. Here are 10 of the most anticipated indie films due this summer, nary a caped superhero or city-crushing monster among them. 1. "The Rover" (June 13) — David Michod'

    April 24, 2014 3 Photos

  • Teen Stowaway Hawaii [Duplicate] Airport official: Teen had no clue he was in Maui HONOLULU (AP) — Long flights can leave anyone a little unsteady, but a teenager who defied the odds, surviving a flight from California to Hawaii tucked in a jetliner's wheel well, was disoriented, thirsty and could barely walk after the freezing, lo

    April 24, 2014 7 Photos

  • Chris Brown Assault [Duplicate] Singer Chris Brown's DC trial delayed for months LOS ANGELES (AP) — Singer Chris Brown's trial on an assault charge was put on hold for months Wednesday after prosecutors declined to grant immunity to his bodyguard, who would be a key witness in the case. Brown will remain in custody for the near

    April 24, 2014 1 Photo

  • Mideast Israel Palestinians [Duplicate] Gaza official: Israeli airstrike wounds 3 GAZA CITY, Gaza Strip (AP) — The rival Palestinian factions Hamas and Fatah on Wednesday agreed to form a unity government and hold new elections, making a new attempt to overcome a seven-year split that has left them divided between two governments.

    April 23, 2014 1 Photo

  • Behind The Wheel 2014 Buick Regal [Duplicate] Buick ads are no joke: Regal gets double takes The television ads where neighbors, friends and family can't identify a new car as a Buick are true to life. The attractive styling on a 2014 Buick Regal test car so stumped admirers, many could not believe it was a Buick. The common question was, "

    April 23, 2014 1 Photo

  • Teen Stowaway Hawaii-3 [Duplicate] Airport security vulnerabilities not uncommon SAN JOSE, Calif. (AP) — For all the tens of billions of dollars that the nation has spent on screening passengers and their bags, few airports made a comparable investment to secure the airplanes themselves. As the case of the San Jose stowaway show

    April 23, 2014 7 Photos

  • Republican activists push party on gay marriage LAS VEGAS (AP) — As bans against gay marriage crumble and public opinion on the issue shifts rapidly, some Republicans are pushing the party to drop its opposition to same-sex unions, part of a broader campaign to get the GOP to appeal to younger vot

    April 23, 2014

  • APNewsBreak: Clemency after 10 years in prison? WASHINGTON (AP) — The Justice Department will begin considering clemency applications from nonviolent federal inmates who have behaved in prison, have no significant criminal history and have already served more than 10 years behind bars, according t

    April 23, 2014

  • South Korea Ship Sinking [Duplicate] 10 Things to Know for Today Your daily look at late-breaking news, upcoming events and the stories that will be talked about today: 1. SUPREME COURT DEALS BLOW TO AFFIRMATIVE ACTION By a 6-2 majority, the court declares that state voters can outlaw using race as a factor in co

    April 23, 2014 3 Photos

  • Missouri Execution Rousan [Duplicate] Missouri executes inmate for 1993 farm slaying BONNE TERRE, Mo. (AP) — Missouri executed an inmate early Wednesday only a few miles from the farm where prosecutors say he orchestrated the 1993 killing of a couple whose cows he wanted to steal. William Rousan's last words were, "My trials and tra

    April 23, 2014 1 Photo

Latest news
Featured Ads
Only on our website
AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller