House Panel to Explore Internet Sales Tax

House Judiciary Committee Bob Goodlatte plans to hold a hearing in the first half of the year to explore online sales tax legislation, according to blog, Hillicon Valley.

Goodlatte (R-Va.) has released a set of seven principles that an online sales tax bill would have to meet in order to be considered by his committee, which has online tax bill supporters and opponents alike knocking on his door.

Technically, sales tax is currently supposed to be paid on all purchases, but states are only able to collect tax on purchases from retailers that have a physical presence in that state.

NAED supports the implementation of online sales tax, knowing that it would help even the playing field between online retailers and brick-and-mortar stores. Opponents say the bill would create mass confusion with online retailers having to wade through nearly 10,000 state and local tax jurisdictions.

Goodlatte wants to consider the issue and welcomes “legislative concepts that would fit his principles,” according to Steve DelBianco, executive director of NetChoice, which represents Facebook, Yahoo and online sales tax critic eBay.

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