Internet Sales Tax Coming Soon?

Internet Sales Tax Coming Soon?

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Online sales have soared over the past decade but when it comes to internet sales tax lawmakers are playing catch up.

"Historically, if you shipped into another state, you didn't collect sales tax. And I guess, because there's lots of people who are ordering online now, the states feel like they are losing out," said Scott Gonzalez, the owner of Three Georges Candy Store.

Over his 26 years of being a business owner he says he's seen his sales trends change drastically.

"Our out of town sales was just off a fax machine, but now with the internet, it's a big chunk of our business. And half of that is started by internet sales, so maybe about 25 percent of our internet sales," said Gonzalez.

A new bill called the Marketplace Fairness Act is now being debated in the U.S. Senate. It would require all large businesses with websites to collect state taxes from online buyers for state and local governments.

Businesses that make less than 1 million dollars in online out of state sales are exempt, but companies like Walmart, Amazon, and eBay would have to comply. Many people tell me collecting the taxes would be the right thing to do.

"I believe I would be in favor of them charging sales tax to individuals, if that money would come back to the local community," said Clay McCarroll.

"You know there is sales tax in every state. If you buy something in person, it's not reasonable to be able to dodge that by purchasing it online," said Trey Oliver.

Still the mention of higher taxes on any level isn't sitting well with everyone. An online petition has been started to axe the bill, asking people to contact senators Jeff Sessions and Richard Shelby and urge them to vote against it.

It's estimated 22 to 24 billion dollars worth of tax revenue goes uncollected. A final vote is expected in the Senate by the end of the week.

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