Bill could mean the end of tax-free online shopping

WASHINGTON – A bill that would force online retailers to collect sales tax could make this “Cyber Monday” the last one without any sales tax.

Many shoppers shop online not only for the better deals, but because they often don’t have to pay any sales tax, but the Marketplace Fairness Act could change that.

The bill, introduced this month in Congress ,would require online retailers to collect sales tax in the 45 states that collect sales tax.

The Supreme Court rules almost 20 years ago that only stores that are physically located in the state are required to collect the state’s sales tax.

Forbes reports the amount of sales taxes left uncollected from web sales every year is estimated between $11 and $23 billion.

WTOP’s Michelle Basch contributed to this report. Follow “>WTOP on Twitter.

(Copyright 2011 by WTOP. All Rights Reserved.)

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