Senators bring back online sales tax bill

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

ADVERTISEMENT

Senate Minority Whip Dick DurbinRichard (Dick) Joseph DurbinFinger-pointing, gridlock spark frustration in Senate Hillicon Valley: Facebook takes down 'boogaloo' network after pressure | Election security measure pulled from Senate bill | FCC officially designating Huawei, ZTE as threats Overnight Defense: Democrats blast Trump handling of Russian bounty intel | Pentagon leaders set for House hearing July 9 | Trump moves forward with plan for Germany drawdown MORE (D-Ill.) and Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderRepublicans considering an outdoor stadium for Florida convention: report Sixth GOP senator unlikely to attend Republican convention Coronavirus Report: The Hill's Steve Clemons interviews Randi Weingarten MORE (R-Tenn.), Mike EnziMichael (Mike) Bradley EnziKoch-backed group urges Senate to oppose 'bailouts' of states in new ads Chamber of Commerce endorses Cornyn for reelection Trump, GOP clash over new round of checks MORE (R-Wyo.) and Heidi HeitkampMary (Heidi) Kathryn Heitkamp70 former senators propose bipartisan caucus for incumbents Susan Collins set to play pivotal role in impeachment drama Pro-trade group launches media buy as Trump and Democrats near deal on new NAFTA 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 BoehnerLott says lobbying firm cut ties to prevent him from taking clients Lobbying firm cuts ties to Trent Lott amid national anti-racism protests Bush, Romney won't support Trump reelection: NYT 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 McConnellHouse chairman asks CDC director to testify on reopening schools during pandemic Senate GOP hedges on attending Trump's convention amid coronavirus uptick Pelosi says House won't cave to Senate on worker COVID-19 protections MORE (R-Ky.) is no fan of the legislation, while his predecessor, Minority Leader Harry ReidHarry Mason ReidMcConnell warns Democrats not to change filibuster rule Filibuster reform gains steam with Democrats The Hill's Morning Report - Trump wants executive order on policing; silent on pending bills 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 GoodlatteUSCIS chief Cuccinelli blames Paul Ryan for immigration inaction Immigrant advocacy groups shouldn't be opposing Trump's raids Top Republican releases full transcript of Bruce Ohr interview 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.