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Financial Transaction Tax Risk in Online Sales Tax Bill

Legislation intended to let states collect sales taxes on online sales transactions could also allow states to impose state-level financial transaction taxes, according to the Securities Industry and Financial Markets Association (SIFMA).  In a recent news release about the Marketplace Fairness Act (S. 743), SIFMA stated:

“We believe the impact of this legislation on trade in services has not been adequately explored by Congress. The bill could lead to unexpected costs being passed on to consumers of financial services, including sales taxes on services or state-level stock transaction taxes.”

The legislation is currently under consideration by the Senate.  If it passes the Senate, it must still be passed by the House and signed into law by the President before it becomes law.  President Obama has indicated support for the bill.