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Posted by: Maricopa Lawyers on Apr 24, 2013

The Internet has been a haven for tax-free shopping for years, offering consumers slight financial flexibility over moderated price tags. Viral shopping has grown in leaps and bounds over the last decade alone, so popular it’s managed to spawn annual events such as ‘Cyber Monday’. Now one bill in Washington, already exhibiting overwhelming support, could repeal one of the many advantages associated with online shopping.

States will soon be able to require online retailers to collect sales tax per purchase. Under current law, a state can only require online retailers to collect sales tax contingent upon a physical presence of the retailer within state boundaries. The absence of sales tax for strictly online retailers has proved to be a major advantage over brick-and-mortar stores.

Those who support the bill suggest the legislation is rooted in creating an even playing field among different businesses and recreating lost revenue among states. Alternatively, opponents suggest the new legislation would introduce convoluted regulations upon retailers and doesn’t do enough to protect small business. Businesses that gross under $1 million annually via Internet sales would initially be exempt.

How likely is the new bill to pass? The Senate voted 74 – 20 in favor of the imposing new sales tax in a test vote. As the unwavering support continues to trend, there’s little indication the bill will not inevitably become law. The increased legislation could reportedly pass as early as this week.

Arizona and several other states in the US require shoppers to payback sales tax when they file their state income tax returns, covering the loss of purchases made online and elsewhere. The number of people that actually comply with the tax ordinance is allegedly just short of completely nonexistent. As a result, many Democrats and Republicans have lobbied the federal government for new tax laws.