The U.S. Senate may vote this week on the Marketplace Fairness Act, a bill that would allow states to collect sales tax from more online retailers. And as the political and retail landscape has shifted from the last time around, the Senate is expected to approve the measure.
The proposal to require online sellers to collect out-of-state sales tax has been kicked around for many years. For a decade, Amazon was a fierce opponent.
And Amazon had U.S. Supreme Court precedent on its side. In 1992 — years before online retail took off — the high court said that out-of-state businesses do not need to collect and remit sales tax where they do not have a physical presence.
But much has changed.
For one thing, empty state and local government coffers have politicians hunting for new tax revenue.
And in retail, the old lines that divide online sellers from brick-and-mortar shops have blurred. Just about every shop, no matter its size, has an online presence.
Conversely, Amazon itself has built a network of distribution centers around the country, meaning it has a physical presence in many states and must therefore collect sales tax.
'Omnichannel' Shopping
The industry calls this convergence between online and offline sellers "omnichannel" shopping.
Michael Kercheval, CEO of the International Council of Shopping Centers and a member of a coalition supporting the new tax bill, says this change has transformed the cast of who supports this new tax.
More From NPR
Planet Money
Most People Are Supposed To Pay This Tax. Almost Nobody Actually Pays It.