Senate approves online sales tax. Is it fair, or a tax increase?
Immediately after the Senate passed the legislation, the conservative R Street Institute issued a statement lamenting the Senate’s vote. The organization suggested that the House consider “origin sourcing,” in which businesses collect sales taxes using the rate for their own physical location, not that of their customers. For example, a New York consumer purchasing an item from an e-commerce business in Maryland would pay the Maryland sales tax rate, not the New York rate.
“An origin sourcing approach could address the concerns of Marketplace Fairness Act proponents while preserving proper limits on taxation, due process rights, and privacy protections for consumers,” said R Street senior fellow Andrew Moylan.
