WASHINGTON, Sept. 25 (UPI) -- You may soon have to pay state sales taxes when making purchases on the Internet under legislation introduced Thursday in the U.S. House.
The Washington Post reported supporters of the sales tax proposal are negotiating with Amazon.com to gain an endorsement from the largest online retailer.
The Post said the legislation would approve a state-led effort to require online retailers to apply state sales taxes to nearly all transactions. In return, states would simplify their complex tax laws to make collecting taxes easier for Internet businesses.
An endorsement from Amazon would be, most likely, the beginning of the end for tax-free Internet shopping, although the Post said Amazon wants the bill to exempt online merchants if they bring in less than $25,000 in sales annually.
The House sponsors -- Reps. Ernest Istook, R-Okla., and William Delahunt, D-Mass., -- introduced their bill Thursday. It would actually exempt companies making less than $5 million annually on Internet sales.
Sen. Mike Enzi, R-Wyo., and Sen. Byron Dorgan, D-N.D., the sponsors of the Senate bill, said they want time to review Amazon's proposal before submitting their legislation.
