Senate Passes Internet Tax Bill

The U.S. Senate passed the Marketplace Fairness Act yesterday by an easy 69-27 vote. But the bill faces an uphill battle in the House, the Memphis Business Journal reports. The measure would allow for the collection of state sales tax on most Internet purchases. Under current law, retailers have to collect taxes only in states where they have a physical presence. The bill also attempts to address concerns that the new requirement will burden small businesses by exempting retailers that sell less than $1 million worth of goods. Some online retailers say that exemption is too small. In a statement issued after the Senate vote, for example, eBay pledged to push the House to raise this exemption to $10 million in sales or 50 employees.