According to ABC News, the introduction of the bill stems from both a dire need to increase state revenue and the fact that tax-free online shopping often places brick-and-mortar establishments in a very bad economic position. After all, why buy directly from a physical store when you can get it on Amazon cheaper?
Online stores have been able to skirt charging sales tax due to a 1992 Supreme Court ruling that held that stores without a physical presence in the state where the customer lives do not have to include sales tax. Between the lower price points and the ease of Internet-based transactions, smaller shops have suffered immensely, while online shopping has flourished.
Technically, you are supposed to report online purchases when you file your state taxes and pay the sales tax there. However, many people are unaware of this rule or simply just don't do it.
A group of heavy-hitting websites that include eBay, Overstock and Facebook have teamed up in protest of the proposed bill. Amazon, on the other hand, has offered support of the bill after battling it out with states -- like Texas -- that demanded they levy sales tax because their distribution centers are located in the state. Traditional retailers with a web presence and physical stores, such as Barnes & Nobel, Wal-Mart and Target, also support the bill.
Now might be a good time to check out those bookmarked shopping carts.