The U.S. Senate voted 75-24 in favor of establishing a national Internet sales tax. The vote was non-binding, meaning it was largely symbolic for now, but the ease with which it passed indicates the lawmakers' inclination to vote for it.
The number of votes means a bill to establish the tax could bypass the US Senate Committee on Finance, according to The Verge. The Marketplace Fairness Act of 2013, should it be be approved and written into law, would remove any advantage that smaller internet retailers have over stores with a multi-state presence.
Intense lobbying in favor of the bill by advocacy groups has taken place, CNET reported. Its proponents include the National Retail Federation and Retail Industry Leaders Association. Retail behemoths Walmart, Best Buy, Home Depot, and Target are members.
Under current law, out-of-state retailers aren't usually obligated to collect taxes on purchases. Estimates show that an estimated $20 billion would be collected if the taxes were in effect.
There are some exceptions to the rule, as companies that have a significant local presence are required by some states to levy sales taxes. Amazon was recently forced to collect taxes in Massachusetts and Connecticut following acquisitions and opening regional offices.
Under the new legislation, only businesses with less than $1 million in annual sales would be exempt from collecting sales tax.
Although the large majority of the Senate voted in favor of the proposal, the opposition has also made its presence felt.
The National Taxpayers Union has created a petition and says the Marketplace Fairness Act is "just a way to unleash state tax collectors on the internet," adding that "doing so will hit small businesses with major compliance headaches, overturn constitutional protections against harsh tax administration, and undermine state tax competition."
