On Monday night, the U.S. Senate passed a bill that would allow states to charge sales tax on online purchases made outside their state borders.
The Marketplace Fairness Act is designed to level the playing field between online stores and traditional brick-and-mortar stores who already charge a sales tax. The president of Lexington-based Trail Blazers Auto and Truck Accessories and TruckAddOns.com says the bill will actually hurt small businesses in an already rough period in the economy by forcing them to decipher each state's tax laws.
Each online retailer would also be susceptible to an audit from each and every state each year.
Online retailers who have less than one million dollars in out of state revenue would be exempt from the law, but many would not qualify for the exemption, including Sanders. He said, "For online sales, a million dollars is not a whole lot. The average online retailer easily does well over a million dollars in sales."
Both U.S. Senators from Kentucky voted against the bill.
The bill will now go to the U.S. House of Representatives where it is expected to have opposition from Republicans who see the bill as a tax measure.