Senate will debate online sales tax - WKOW 27: Madison, WI Breaking News, Weather and Sports

Senate will debate online sales tax

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WASHINGTON (WKOW) -- A bill that would allow states to collect sales taxes for internet purchases passed a test vote in the Senate  on Monday.

Right now, states can only require stores to collect sales taxes if the store has a physical presence in the state.

As a result, many online sales are essentially tax-free, giving internet retailers a big advantage over brick-and-mortar stores.

The Senate voted 74 to 20 Monday to take up the bill. If that level of support continues, the senate could pass the bill as early as this week.

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