House Panel Mulls Exemptions on Internet Sales Taxes

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Lawmakers on the House Judiciary Committee are split on whether small businesses should be exempt from charging sales taxes on online purchase and, if so, how small those businesses should be to avoid the requirement. At a hearing on legislation allowing states to collect sales taxes for online purchases, lawmakers cannot agree on whether companies with less than $1 million in national sales should be exempt from collecting taxes, whether the cutoff should be $500,000—or whether all businesses should have to collect them, as some committee members say.