Internet Sales Tax. This bill (S. 743) would allow states to require out-of-state retailers with annual online sales that exceed $1 million to collect sales taxes on items delivered to the state. States would have to simplify how they collect and audit their sales taxes, and provide free software to retailers to calculate the taxes owed. States would not be allowed to impose different sales tax requirements on out-of-state online sellers from those required of in-state retailers.
The Senate passed S. 743 on May 6, 2013 by a vote of 69 to 27 (Roll Call 113). We have assigned pluses to the nays because the Internet sales tax would essentially be a tax on interstate commerce, which is unconstitutional according to Article I Section 9: \”No Tax or Duty shall be laid on Articles exported from any State.\” Furthermore, requiring online retailers to collect sales taxes from numerous states would pose onerous burdens to small businesses and hinder economic growth.
