Senate Moves Closer to Requiring Online Sales Tax

The U.S. Senate easily cleared a procedural hurdle yesterday to allow final consideration of a bill that requires most online retailers to collect state sales taxes. Under current law, online merchants only have to collect taxes in states where they have a physical presence. A vote on final passage is expected later this week. Observers note, however, that prospects for the bill are a bit more complicated in the House, where conservatives are likely to oppose any measure viewed as a tax increase. The Washington bureau chief for The Business Journals explores the dynamics.