The House Judiciary committee chairman believes the Marketplace Fairness Act, which would give states the power to compel online retailers to collect state and local sales taxes even if the retailer does not have a physical presence in the state is probably dead:
Recall that Virginia’s new transportation law counts on congressional approval of the Marketplace Fairness Act to help supply hundreds of millions of dollars in funding for roads. Should the bill fail, as Goodlatte says, Virginia’s wholesale tax on gasoline would rise from 3.5 to 5.1 percent to make up part of the funding difference.
Update
A statement from Rep. Goodlatte’s office takes issue with the way WSLS reported his comments on the Act’s viability:
Congressman Bob Goodlatte: “A news story published earlier today regarding my position on the Internet sales tax is inaccurate and should be corrected. I have previously stated that I have serious concerns regarding the Marketplace Fairness Act passed by the Senate. However, as clearly stated in a statement on the House Judiciary Committee’s website, I am open to considering legislation concerning this topic and the House is working on alternatives to the bill passed by the Senate.
“To be clear, if any action is taken, Congress must be involved in the process and the House Judiciary Committee is looking at alternatives that could enable states to collect sales tax revenues without opening the door to aggressive state action against out-of-state companies. Furthermore, any alternative in the House would address fairness to all businesses and consumers.”
