Business

Senate advances online tax bill

The US Senate advanced legislation that would let states collect taxes on out-of-state sellers, including sales over the Internet and through catalogs.

The 74-20 vote overcomes a procedural hurdle. A final vote on the measure, which is supported by the Obama administration, may come later this week.

Wal-Mart, Best Buy, state governments and mall owners back the measure sponsored by Sen. Mike Enzi (R-Wyo.). Opponents include antitax groups, direct marketers, EBay and Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee who represents one of five states without a sales tax.

If passed, the measure’s prospects in the House of Representatives are uncertain.

Supporters say brick-and-mortar retailers have a competitive disadvantage with Internet-based sellers and others, costing state governments an estimated $24 billion a year in forgone revenue.

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