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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 DurbinDick DurbinOfficials brace for second Trump impeachment trial Sunday shows - Capital locked down ahead of Biden's inauguration Durbin says he won't whip votes for Trump's second impeachment trial MORE (D-Ill.) and Sens. Lamar AlexanderLamar AlexanderCongress addressed surprise medical bills, but the issue is not resolved Trump renominates Judy Shelton in last-ditch bid to reshape Fed Senate swears-in six new lawmakers as 117th Congress convenes MORE (R-Tenn.), Mike EnziMichael (Mike) Bradley EnziSenate swears-in six new lawmakers as 117th Congress convenes With Senate at stake, Georgia is on all our minds Wyoming mask mandate backed by GOP lawmakers goes into effect MORE (R-Wyo.) and Heidi HeitkampMary (Heidi) Kathryn HeitkampHarrison seen as front-runner to take over DNC at crucial moment Biden to tap Vilsack for Agriculture secretary: reports OVERNIGHT ENERGY: EPA guidance may exempt some water polluters from Supreme Court permit mandate | Vilsack's stock rises with Team Biden | Arctic wildfires linked to warming temperatures: NOAA 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 BoehnerCan the GOP break its addiction to show biz? House conservatives plot to oust Liz Cheney Ex-Speaker Boehner after Capitol violence: 'The GOP must awaken' 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 McConnellGraham calls on Schumer to hold vote to dismiss article of impeachment against Trump Rove: Chances of conviction rise if Giuliani represents Trump in Senate impeachment trial Boebert communications director resigns amid Capitol riot: report MORE (R-Ky.) is no fan of the legislation, while his predecessor, Minority Leader Harry ReidHarry Mason ReidThe Memo: Democrats scorn GOP warnings on impeachment Trump, Biden face new head-to-head contest in Georgia The fight begins over first primary of 2024 presidential contest 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 GoodlatteBottom line No documents? Hoping for legalization? Be wary of Joe Biden Press: Trump's final presidential pardon: himself 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.