Bill could do away with tax free online shopping

April 16, 2009 5:03:41 PM PDT
A bill is expected to be introduced in Congress as early as Monday that would rewrite the rules for mail order and internet sales. Currently, a loophole in the law allows shoppers to buy from an online retailer and not pay a sales tax if a brick and mortar store is not located in the purchaser's state. Pro-tax officials and many state governments have been pressing congress to close that loophole, arguing that reduced sales tax revenue threatens budgets for schools and police.