Many states have been trying to force larger online retailers to collect sales tax, despite the prevailing federal law that only requires tax collection by retailers with a physical presence within their states. Some states have passed laws that expand what constitutes physical presence—or “nexus” in legal terms—to include receiving traffic from an affiliate in a state or dropping cookies on the browsers of state residents. However, a bill introduced in Congress would put a stop to those ploys.
Rep. James Sensenbrenner (R-Wisconsin) has introduced a bill that would explicitly prohibit states from creating new definitions of nexus that would require retailers to collect sales tax in states where they lack a physical presence, such as a store, office or warehouse.. . . more