CCH has released a new analysis of the Internet sales tax legislation approved by the Senate this week.

On Monday, the Senate passed the Marketplace Fairness Act, which requires Web vendors to collect sales taxes from their online sales, even if they lack a physical presence in the state where the customer resides (see Senate Passes Internet Sales Tax Legislation). The bill has now moved to the House for consideration, where it faces opposition from anti-tax lawmakers.

CCH’s new Tax Briefing on the Marketplace Fairness Act provides insights and analysis on the legislation and its potential impact, particularly for those who buy and sell online.

The bill comes after more than 10 years of legislative efforts by state and local government officials who believe out-of-state sellers should be responsible for remitting the same sales and use taxes as those generated by traditional “brick-and-mortar” businesses. The National Conference of State Legislators estimates that in 2012, states collectively lost $23 billion in revenue from uncollected sales tax.

“Although the legislation received strong bipartisan support in the Senate, its future passage in the House isn’t a sure thing,” said CCH principal federal tax analyst Mark Luscombe. “Supporters claim the issue is about fairness and that Internet sellers shouldn’t enjoy an unfair advantage, but critics say it amounts to a tax increase.”

Visit www.CCHGroup.com/Legislation to access CCH’s new Tax Briefing on the Marketplace Fairness Act, and other CCH Tax Briefings on significant tax developments.