Durbin: There’s support for online tax bill

U.S. Sen. Dick Durbin has introduced the Marketplace Fairness Act, which is likely to come up before the end of the year. (Photo used under Creative Commons from Flickr user AMSF2011)

CHICAGO – U.S. Sen. Dick Durbin (D-IL) believes there is bipartisan support for his bill to make online retailers collect sales tax, but there is one debate on the issue that isn’t over.

Durbin says lawmakers are still trying to figure out what size an online retailer should be before they’re required them to collect state sales tax.

“We’re not going after Grandma Jones’ apple butter concession in Cobden, Ill,” Durbin said, giving an example. “She can still sell that apple butter on the internet if she’d like to but when she reaches a certain point she’s become a real business.”

While members of Congress try to figure that out, Durbin says there is good news, as online retailer Amazon is backing his legislation. It was Amazon that ended relations with their Illinois affiliates after the state passed a law requiring online merchants to collect state sales tax.

Durbin believes he’ll have the 60 votes needed to bring the measure to the Senate floor for a vote early this spring.