Multistate Taxation: Marketplace Fairness Act Gaining Momentum

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On April 22, 2013, the U.S. Senate voted to take up the Marketplace Fairness Act of 2013 for debate and amendment. Notably, President Obama came out in support of the bill. While several hurdles remain, including passage by the Republican-controlled House of Representatives, this is step towards federal legislation permitting states to force remote sellers, i.e., online and catalog retailers, to collect sales tax even without an in-state physical presence. As currently drafted, retailers with less than $1 million of annual sales would be exempt from sales tax collection without a physical presence.

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