Senate passes Marketplace Fairness Act

Last week the Senate passed the Marketplace Fairness Act, legislation that would allow states to compel online retailers, no matter where they are located, to tax consumers at the point of purchase – meaning more shoppers would pay sales tax for items snagged on online sites like Amazon or Ebay. For years, brick and mortar retailers have been required to charge customers sales tax at the point of purchase, while online sellers often have not.

“Online-only retailers have exploited that, and have been able to have in some instances as much as a 10 percent price advantage over brick and mortar resources,” notes Joshua Baca, spokesman for the Alliance for Main Street Fairness, a group representing almost 8,000 business owners in favor of ending the tax advantage enjoyed by online retailers.