The Star Beacon; Ashtabula, Ohio

World, nation, state

May 6, 2013

Senate passes bill letting states tax online sales

WASHINGTON —  The Senate sided with traditional retailers and financially strapped state and local governments Monday by passing a bill that would widely subject online shopping — for many a largely tax-free frontier — to state sales taxes.

The Senate passed the bill by a vote of 69 to 27, getting support from Republicans and Democrats alike. But opposition from some conservatives who view it as a tax increase will make it a tougher sell in the House. President Barack Obama has conveyed his support for the measure.

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 Wal-Mart, 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.

“We ought to have a structure in place in the states that treats all retail the same,” said Matthew Shay, president and CEO of the National Retail Federation. “Small retailers are collecting (sales tax) on the first dollar of any sale they make, and it’s only fair that other retailers who are selling to those same customers the same product have those same obligations.”

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 state where the shopper lives.

Supporters say the current tax disparity is turning some traditional stores into showrooms, where shoppers pick out items they like, then buy them on the Internet to avoid sales taxes.

Text Only
World, nation, state
  • Rare summer relief for gasoline prices

    The gasoline price roller coaster is running a strange course this summer.

    August 2, 2014

  • Poll finds public ready to close book on 2 wars

    Three in four Americans think history will judge the wars in Iraq and Afghanistan as failures, according to an Associated Press-GfK poll that shows that about the same percentage think it was right to pull forces from the two countries.

    August 2, 2014

  • Rain of asteroids melted early Earth, boiled its oceans

    When you look up at the moon’s pockmarked face, you’re actually staring at Earth’s early history. The rain of asteroids that pummeled the lunar surface hit our planet too - it’s just that erosion and plate tectonics blotted out the evidence. In fact, no rocks anywhere in the world survived to tell the story of the first 500 million years of Earth’s 4.5 billion-year existence, a tumultuous period of frequent impacts known darkly as the Hadean.

    August 1, 2014

  • As U.S. job market strengthens, many don’t feel it

    For millions of workers, happy days aren’t quite here again.

    August 1, 2014

  • Energy boom brings new focus on rail, pipeline safety

    The sharp increase in U.S. oil production and its promise of energy independence is coming with a disastrous byproduct: spills that threaten lives, communities and the environment.

    August 1, 2014

  • Deep-sea octopus goes without food for 4.5 years while watching eggs

    Talk about extreme parenting: Scientists have found a deep-sea octopus mama that faithfully guards the same clutch of eggs for an incredible 4 1/2 years — a record.

    July 31, 2014

  • Study finds 35 percent in U.S. facing debt collectors

    More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute.

    July 30, 2014

  • U.S. blasts Israel for Kerry criticism

    The Obama administration pushed back strongly Monday at a torrent of Israeli criticism over Secretary of State John Kerry’s latest bid to secure a cease-fire with Hamas, accusing some in Israel of launching a “misinformation campaign” against the top American diplomat.

    July 29, 2014

  • Outlook on Medicare finances improves

    Medicare’s finances are looking brighter, the government said Monday. The program’s giant hospital trust fund won’t be exhausted until 2030 — four years later than last year’s estimate.

    July 29, 2014

  • Plan to simplify 2015 health renewals may backfire

    If you have health insurance on your job, you probably don’t give much thought to each year’s renewal. But make the same assumption in one of the new health law plans, and it could lead to costly surprises.

    July 28, 2014

House Ads
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.
AP Video