Seventy-five U.S. Senators showed their support for the Marketplace Fairness Act of 2013, which would allow states to require out-of-state online and catalog retailers to collect sales taxes on sales within their jurisdiction. An amendment summarizing the bill was added to the FY2014 Budget Resolution approved 50-49 March 25.
While the budget resolution is non-binding and a stand-alone bill still must be approved in both the House and Senate, the vote showed overwhelming support for the legislation in the Senate.
The Marketplace Fairness Act is a bill whose time has come in Congress and one that is long overdue for states, local governments and small businesses, said the bills primarily sponsor Sen. Dick Durbin, D-IL.
The Marketplace Fairness Act of 2013 is cosponsored by 28 Republicans and Democrats in the Senate and 48 Republicans and Democrats in the House. The bill currently has the support of over 268 labor, business and government organizations while 22 Governors (15 Republicans and 7 Democrats) have come out in support of leveling the playing field for businesses by addressing sales tax fairness.
If approved, the bill would authorize states to require the collection of sales and use taxes already owed under State law by out-of-state businesses. Currently states must rely on consumers to calculate and remit those taxes voluntarily because of two Supreme Court rulings that concluded forcing remote retailers to calculate, collect and remit sales taxes for thousands of state tax authorities would place an undue administrative burden on them.
