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Senate Passes Online Sales Tax Law

Posted on May 7, 2013 by HFN Staff

WASHINGTON-The U.S. Senate has passed the Marketplace Fairness Act of 2013, the bill that would enable states to compel online and catalog retailers to collect sales tax on their transactions.

The bill now goes  to the U.S. House of Representatives for a vote. The Senate passed the bill by 69 to 27.

In a statement issued last night, right after the vote, Matthew Shay, president and CEO of the National Retail Federation, praised the Senate vote. "Today's action in the Senate is a significant step for sales tax fairness, and we look forward to a robust debate in the U.S. House of Representatives. This bill ... will level the playing field for all retailers--both online and off--while safeguarding states' rights."

Stephen Sadove, chairman and CEO of Saks and chairman of the NRF board of directors, added, "Retailers compete for customers on many different levels, distribution channels and fronts, including service and selection, but they cannot compete on sales tax. Congress needs to address this sales tax disparity and allow retailers to compete freely and fairly."