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May 7, 2013

King, Collins help pass online sales tax bill

Maine's U.S. senators helped to pass a bill Monday that would allow states to collect sales tax from online retailers based elsewhere. But to become law, the bill still has to clear the House, where some Republican leaders have expressed opposition.

The Associated Press reported U.S. Sens. Susan Collins and Angus King were in the majority Monday to pass the measure that supporters say would protect small brick-and-mortar retailers that compete with large online retailers. Online retailers do not have to collect sales taxes in states where they do not have offices or distribution centers.

The strongest opposition to the bill has come from New Hampshire, Montana and Oregon, which have no state sales tax. Representatives from those states argue it is unfair to require companies based there to collect sales taxes for sales made in other states.

The bill would exempt small online retailers that log less than $1 million in online sales.

In Maine, the proposal has support from the Maine Merchants Association, the Maine Municipal Association and the Maine Veterinary Medical Association.

The bill now heads to the U.S. House for consideration.

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