TODAY

TODAY   |  May 06, 2013

New Internet sales tax up for Congress vote

If saving money is one of the reasons you shop online, you may end up paying more every time you buy if Congress votes to pass a new Internet sales tax to pump money into cash-strapped states. NBC’s Kelly O’Donnell reports.

Share This:

This content comes from Closed Captioning that was broadcast along with this program.

>>> if you do any of your shopping online you want to listen up, the senate is expected to vote on a new internet sales tax today. here's nbc's capitol hill correspondent kelly o'donnell.

>> reporter: for sarah davis the internet customer is the heart of her small family-run business. at fashion file she sells designer handbags across the country. and current law gives her one advantage that might disappear, her online customers don't pay state sales tax .

>> i just don't want them to go anywhere else. i want our customers to sta happy to shop online and i know that the fact there's no sales tax is one big plus that keeps them with us.

>> reporter: a new internet sales tax would pump billions of dollars into cash-strapped states, only five states do not have sales tax . the big political push is coming from retailers with brick and mortar stores that mus collect sales tax . their shoppers pay more.

>> it will give everybody a level playing field so retailers can compete on price, quality, service, and not have the government interfering.

>> reporter: online giant amazon supports the internet sales tax and with warehouses all over, amazon is already required to collect some taxes, but ebay, which lives only on the web, is fighting hard to stop it.

>> instead of just having to file your taxes in one place or get audited by one tax regime, you face that from every state in the country, and that's a significant, newurden for small business .

>> reporter: sellers like sarah davis say they should not be forced to figure out how much their customers owe with different tax rates across the country. for "today," kelly o'donnell, nbc news, washington.