eCommerce to be taxed out of state?

Four US senators have submitted legislation called the Marketplace Fairness Actthat would enable states to collect taxes on eCommerce sales even for buyers that are out-of-state. This legislation would undo a practice of not taxing Internet sellers that has been around since the dawn of eCommerce on the web.

The justification for this new legislation is based on estimates of close to US$4 billion in eCommerce sales taxes go uncollected every year. Also, the Senators feel that the current system is unfair to small, bricks-and-mortar businesses and shops.

States would only be able for collecting sales tax on Internet sales if they sign-on to a Streamlined Sales ( simplifed sales tax collection)--Tax Agreement (SSUTA), a 12-year-old effort.

NetChoice and a number of other major Internet trade advocates oppose the legislation saying that it will seriously hurt small business and hurt consumers.