U.S. Senator Bob Corker is seen in this file photo.
U.S. Senator Lamar Alexander speaks during a press conference in this file photo.NASHVILLE – A bipartisan group of U.S. senators, including Tennessee Republicans Lamar Alexander and Bob Corker, introduced a bill Wednesday that allows Tennessee, Georgia and other states to require online retailers to collect sales taxes.
“It ends a subsidy for some businesses over others,” Alexander said. “It ends a subsidy for some taxpayers over others.”
Brick-and-mortar retailers hailed the bill and said the bipartisan effort by 10 senators gives new momentum to their attempts to “level the playing field” between traditional stores and the burgeoning e-commerce businesses.
Traditional retailers must collect sales taxes but, under U.S. Supreme Court decisions, states cannot compel e-retailers and other out-of-state retailers to collect tax unless they have an actual physical presence such as a store.
However, many online sellers oppose the bill. eBay contends the legislation “will unbalance the playing field between giant retailers and small business competitors.”