The Senate voted 74-20 on Monday to consider S.743, the Marketplace Fairness Act.

The bill requires businesses to collect local and state sales taxes for purchases made on the Internet. The taxes would go to the state where the consumer lives.

The bill exempts businesses with less than $1 million a year in annual revenue. It does not appear to exempt businesses in Indian Country.

Supporters say the bill will generate between $22 billion to $24 billion for states. Opponents are calling the measure an unfair tax grab.

The Senate could vote for final passage of the bill by the end of the week.

Get the Story:
Senate moves ahead on online sales tax — but would it help or handicap small businesses? (The Washington Post 4/23)
Internet Sales Tax Bill Gains Ground in Senate (The New York Times 4/23)
Vote shows strong support in Senate to allow states to collect taxes from Internet sales (AP 4/23)