Measure would give states the option to require collection of state sales taxes
Senator Mary Landrieu has joined a bipartisan group of 53 senators and representatives to introduce a proposal that would give states the option to require the collection of sales taxes by out-of-state retailers.
Landrieu says the legislation, described as the Marketplace Fairness Act, would help level the playing field between brick-and-mortar retailers and online businesses.
The proposal would overturn a 1992 U.S. Supreme Court decision that found states may not reach beyond their borders and require out-of-state vendors to collect the sales taxes owed.
The senator says small retailers are being put at a disadvantage. "This legislation is simply about fairness," she says.
It's estimated that $800 million of potential Louisiana sales tax revenue goes uncollected annually.