If you like to shop online, you could soon pay more - Cincinnati News, FOX19-WXIX TV

If you like to shop online, you could soon pay more

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CINCINNATI, OH (FOX19) -

If you like to shop online, you could soon pay more. 

The senate passed the Marketplace Fairness Act on Monday, a bill that could end tax-free shopping on the Internet for many shoppers.

It would also empower states to require businesses with more than $1 million in out-of-state sales, to collect taxes for products they sell on the Internet.

Under the legislation, the sales taxes would be sent to the states where a shopper lives. Current law only requires retailers to collect sales tax if the merchant has a physical presence in the state.

Supporters of the bill say the estimated $23 billion in tax revenue missed out on could go toward helping state and local governments.

However, those against it regard it as a tax increase, and plenty of shoppers weren't so thrilled with the idea.

"I really cannot see one upside.  I go for the deal, however I can get it.  Whatever I can get cheaper, that's what I'm going for," said Wesley Hartoin of Cincinnati.

Take a trip to Fort Thomas, KY and visit 'Blue Marble Children's Bookstore'.  Owner Peter Moore says it's time for everyone to pay up.

"I think everyone ought to pay their fair share.  This is simply a way of saying, 'No, people who go online can't get out of paying that sales tax'," said Moore.

To see exactly how the law would work, use the newest iPad as an example. According to Apple's website, they start at $499. FOX19 found the same model brand new on Amazon.com for $474.95.

Since Amazon has no physical presence in Ohio, you're exempt from the tax in Ohio. However, if the bill passes, the Amazon iPad for $474.95 will come with a 5.5% sales tax, totaling $501.07.

Even with that small increase, some shoppers will be pushed off the Internet and into the store.

Moore says another good thing about the Marketplace Fairness Act is that it would keep local money, local.

In Ohio, Senators Rob Portman and Sherrod Brown both voted for the measure. Brown says he voted for it, in part, because Ohio has lost nearly $630 million in uncollected tax dollars.

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