Senators bring back online sales tax bill

A bipartisan group of senators is taking another crack at online sales tax legislation.

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Senate Minority Whip Dick DurbinRichard (Dick) Joseph DurbinQuestions loom over Franken ethics probe GOP defends Trump judicial nominee with no trial experience Democrats scramble to contain Franken fallout  MORE (D-Ill.) and Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderGOP senator: ObamaCare fix could be in funding bill Collins: Pass bipartisan ObamaCare bills before mandate repeal Murkowski: ObamaCare fix not a precondition for tax vote MORE (R-Tenn.), Mike EnziMichael (Mike) Bradley EnziGOP senators ask Trump for meeting on biofuels mandate Senate budget just the latest attack on seniors Week ahead: GOP's next steps on tax reform | Fed chief speculation heats up | Senate to vote on disaster relief MORE (R-Wyo.) and Heidi HeitkampMary (Heidi) Kathryn HeitkampDemocrats scramble to contain Franken fallout  Overnight Finance: House passes sweeping tax bill in huge victory for GOP | Senate confirms banking regulator | Mulvaney eyed for interim head of consumer agency Overnight Regulation: Senators unveil bipartisan gun background check bill | FCC rolls back media regs | Family leave credit added to tax bill | Senate confirms banking watchdog MORE (D-N.D.) rolled out the Marketplace Fairness Act on Tuesday, which would give states more power to collect sales taxes from businesses that don't have a physical location within their borders.

"The Marketplace Fairness Act is about supporting the jobs we have in our towns. It is about the people who are our neighbors who work in our local stores," Enzi said in a statement.

"It’s time to give states the right to enforce their own laws without having to get permission from Washington.”

The Senate passed a substantially similar version of the Marketplace Fairness Act in May 2013, by a wide bipartisan margin. But top Republicans in the House opposed the measure, and Speaker John BoehnerJohn Andrew BoehnerTrump's pick for Federal Reserve chief is right choice at right time The two-party system is dying — let’s put it out of its misery One year later, neither party can get past last year's election MORE (R-Ohio) made sure it never came up for a vote – much to the chagrin of the retail groups that support the proposal.

Supporters both on and off Capitol Hill say the measure would correct an unfair advantage that online retailers have over brick-and-mortar shops. States are currently barred from collecting sales taxes from out-of-state retailers due to a 1992 Supreme Court decision, though Justice Anthony Kennedy suggested last week that the court should revisit that opinion.

But opponents, including prominent conservative groups and lawmakers, have struck a populist tone, casting the bill as essentially a giveaway to K Street, big box stores and Amazon.

"It’s a changed Congress and a new year, but this Marketplace Fairness Act is the same old, tired idea that stalled in the last Congress," said Steve Delbianco of NetChoice, one of those opponents.

Backers of the measure face a more difficult path to even getting the bill passed in the Senate, now that Republicans have taken control of the chamber. Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellAlabama election has GOP racing against the clock McConnell PAC demands Moore return its money Klobuchar taking over Franken's sexual assault bill MORE (R-Ky.) is no fan of the legislation, while his predecessor, Minority Leader Harry ReidHarry ReidVirginia was a wave election, but without real change, the tide will turn again Top Lobbyists 2017: Grass roots Boehner confronted Reid after criticism from Senate floor MORE (D-Nev.), was one of the measure's biggest champions.

But supporters could try once more to pair the online sales tax measure with an extension of the Internet Tax Freedom Act, a relatively noncontroversial measure barring taxes on online access that is set to expire at the end of September. Senate sponsors of the Marketplace Fairness Act tried a similar tactic last year, but were still unable to get the measure to President Obama's desk. 

House Judiciary Chairman Bob GoodlatteRobert (Bob) William GoodlattePoll: Plurality of voters want special counsels for both campaigns Gun reformers search for the next bump stock AT&T wants to probe Trump's role in Time Warner merger: report MORE (R-Va.) has been working on his own proposal, which would levy taxes based on where the retailer – not the customer – is based. But retail groups have already panned that proposal.