WASHINGTON — State and local groups overwhelmingly praised the Senate passage of the online sales tax bill late Monday night but it still remains uncertain whether it can clear the House, where Republicans view it as a new tax.

The Senate voted 69 to 27 on the Marketplace Fairness Act, S. 743, which would enable states to collect sales taxes from Internet purchases. The bill would require out-of-state retailers to collect sales taxes when online goods are sold. Currently only retailers who have a physical presence in a state can collect sales taxes and supporters of the bill claim they have a disadvantage to online businesses.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.