Under S. 743 [PDF 241 KB], the Marketplace Fairness Act of 2013, the 24 member states of the Streamlined Sales and Use Tax Agreement (SSUTA*) could require sellers in every state (not only SSUTA members), to collect and remit sales/use taxes.
Sellers with gross receipts of less than $1 million would be exempt.
On a non-binding resolution during consideration of its budget resolution in March 2013, the Senate voted, 75-24, in favor of the Marketplace Fairness Act.
All but five states have statewide sales taxes. Sales taxes are paid by the consumer to the business selling the good or service, and the business then remits the tax to the state or local government. If the consumer is purchasing a good or service from an out-of-state business, the consumer typically owes a use tax to the state where the good or service is used, provided the state where the product will be used has a sales tax.
In 1992, the U.S. Supreme Court held that states with sales/use taxes cannot require out-of-state businesses to withhold sales taxes.
*The SSUTA is an agreement among various states that seeks to have states simplify their sales tax and use tax laws. SSUTA includes 22 full member states (their laws comply with SSUTA); two associate member states (their laws are largely, but not completely, compliant); and 18 advisory states and Washington, D.C. (their laws do not comply with SSUTA).