![Proposed Bill Could End Tax-Free Internet Shopping](http://townsquare.media/site/36/files/2012/11/107195606.jpg?w=980&q=75)
Proposed Bill Could End Tax-Free Internet Shopping
The loophole allowing online shoppers to avoid paying sales tax could soon be coming to an end.
Currently, states can only require stores to collect sales taxes on online purchases if the store has a physical presence in the state. This loophole has allowed online sales to thrive in an economy where everyone is looking for the best deal possible.
A bill currently making its way through Senate is seeking to close the online sales tax loophole which many believe gives online stores a major competitive advantage over physical stores in the marketplace. The bill would ask online businesses that collect at least $1 million annually to collect sales taxes for the state of purchase.
The bill however is not without it's opponents who've criticized the proposed legislation as a new tax. Critics also say forcing out-of-state businesses to calculate and collect sales taxes before shipping them off to the state of purchase is to heavy a burden to place on online businesses.
Still, supporters of the bill maintain it is not a new tax and would go a long way towards leveling the market playing-field between physical stores and their online counterparts.
The bill received a 74 to 20 vote in Senate Monday and could soon pass if support continues.
[via ABC News]
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