According to Website Magazine, "Legislators are apparently split over whether they should pass theMarketplace Fairness Act, which forces online retailers to collect sales tax in those states where they have no physical presence (or nexus).
"The bill is backed by national brick-and-mortar retailers (e.g. Walmart, Target), who have to collect sales tax on the Web because they have physical operations in the states that collect sales taxes. They often are competing against smaller Web shops that are located out of state and therefore are not required to collect sales tax under the existing Supreme Court precedent."
"A bipartisan group passed the Marketplace Fairness Act out of the Senate last year on a 69-27 vote, led by Sens. Richard J. Durbin, D-Ill., and Michael B. Enzi, R-Wyo., but it has languished in the House."
Note, of course, that eCommerce merchants DO have to collect sales tax where they DO have any presence (HQ, call center, warehouse).
Ernie Schell is Director of consultancy Marketing Systems Analysis. He has over twenty years experience consulting with direct marketing, eCommerce, and fulfillment companies in specifying, selecting, and implementing order entry, fulfillment and eCommerce systems.
Ernie was Editor of Target Marketing from 1981 to 1983. Since founding his own consulting firm, he has contributed hundreds of articles and reviews to Catalog Age, Operations and Fulfillment, Target Marketing, Catalog Success, and Multichannel Merchant magazines. He is a regular speaker at the National Conference on Operations & Fulfillment, and makes presentations at numerous other business and marketing conferences in the US and the UK.