Congress Holds Hearings on On-Line Tax

Online tax debate grows as retailers and states weigh in on the clash: On July 24 the House Judiciary Committee convened for a hearing on the Marketplace Equity Act, one of three bills empowering states to compel online merchants to collect sales tax. The bills were designed to close what supporters claim is a loophole from the 1992 Supreme Court decision Quill Corp. v. North Dakota, wherein only merchants with physical presence in a state must collect sales tax.