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Published May 07, 2013, 09:22 PM

Internet sales tax passes senate, faces opposition in house

WASHINGTON - Traditional retailers and cash-strapped states face a tough sell in the House as they lobby Congress to limit tax-free shopping on the Internet.

By: Stephen Ohlemacher, Associated Press

WASHINGTON - Traditional retailers and cash-strapped states face a tough sell in the House as they lobby Congress to limit tax-free shopping on the Internet.

The Senate passed a bill that empowers states to collect sales taxes from Internet purchases. Under the bill, states could require out-of-state retailers to collect sales taxes when they sell products over the Internet, in catalogs and through radio and TV ads. The sales taxes would be sent to the states where a shopper lives. The bill faces opposition in the House, where some lawmakers regard it as a tax increase.

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