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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 DurbinRichard (Dick) Joseph DurbinDemocrats warn GOP will regret Barrett confirmation Democrats brace for nail-biting finish to Senate battle Democratic Senate emerges as possible hurdle for progressives  MORE (D-Ill.) and Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderSenate Health Committee chair asks Cuomo, Newsom to 'stop second guessing' FDA on vaccine efficacy The Hill's Morning Report - Sponsored by Goldman Sachs - Two weeks out, Trump attempts to rally the base McConnell aims for unity amid growing divisions with Trump MORE (R-Tenn.), Mike EnziMichael (Mike) Bradley EnziBottom line Chamber of Commerce endorses McSally for reelection Cynthia Lummis wins GOP Senate primary in Wyoming MORE (R-Wyo.) and Heidi HeitkampMary (Heidi) Kathryn HeitkampThe Hill's Morning Report - Sponsored by JobsOhio - Showdown: Trump-Biden debate likely to be nasty Senate Democrats want to avoid Kavanaugh 2.0 Harris faces pivotal moment with Supreme Court battle 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 BoehnerBottom line Pelosi and Trump go a full year without speaking Jordan vows to back McCarthy as leader even if House loses more GOP seats 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 McConnellMcConnell tees up Trump judicial pick following Supreme Court vote Democrats warn GOP will regret Barrett confirmation GOP Senate confirms Trump Supreme Court pick to succeed Ginsburg MORE (R-Ky.) is no fan of the legislation, while his predecessor, Minority Leader Harry ReidHarry Mason ReidGOP Senate confirms Trump Supreme Court pick to succeed Ginsburg Democratic Senate emerges as possible hurdle for progressives  Harry Reid: Biden should give GOP three weeks to see if they will work with him 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.