Online sales tax advances

WASHINGTON – The Senate on Thursday failed to pass bipartisan legislation that would allow states to collect sales taxes from larger Internet retailers, but the bill cleared a key procedural hurdle and is on track for approval after lawmakers return from a recess.

Momentum has been building for the Marketplace Fairness Act, which is strongly supported by most state and local governments and traditional brick-and-mortar retailers. But opposition from some online retailers and a small group of senators largely from states that do not have sales taxes derailed the legislation temporarily.

With lawmakers eager to leave town for the scheduled break, Senate Majority Leader Harry Reid, D-Nev., forced a vote Thursday to cut off debate. The procedural measure passed 63 to 30.

Reid said a vote on final passage of the bill would take place May 6.

Los Angeles Times