DALLAS (WBAP 24/7 News) - Internet retailers could soon be forced to collect sales tax on purchases made from other states.
The U.S. Senate passed legislation Monday afternoon that requires online business that do at least a million dollars in sales to collect sales taxes.
But Ann Wood of Dallas says that million-dollar threshold is too low.
"I'm an attorney and now a stay-at-home mom and I have a business that I've gradually built over the years on eBay," said Wood. "It's a luxury consignment business and I sell for other people."
She her sales approached a million dollars last year, meaning she may have to collect sales taxes if legislation is signed into law.
"We simply cannot handle the tax burdens of collecting and remitting sales tax in the 45 sales tax-collecting states. We can't handle the possibility of audits and and compliance issues," said Wood.
Wood says she sells to people around the country and the world.
"I don't think the legislation should pass at all. I don't have any business collecting sales tax in other states where I don't avail myself of the services of the state. I think the buyers will see this as a new tax, which is what it is."
Previously, businesses only had to collect sales tax online from buyers who lived in a state in which they had a physical presence. Supporters of the legislation say it will help level the playing field for traditional brick-and-mortar retailers.
Texas Republican Senator Ted Cruz was one of 27 Senators who voted against the measure Monday. He even referenced a letter Wood sent him.
"She estimates it could take her six weeks a year to comply with the sales tax procedures for each of the collecting states," said Senator Cruz.
Senator Cruz says he simply doesn't support the measure.
"They don't have a presence there they don't vote there, they don't have influence there. But yet they're being dragooned into collecting those taxes. I think that's fundamentally not right."
The U.S. House is expected to take up similar legislation soon, but the eventual outcome there is less clear.
(Copyright 2013 WBAP 24/7 News. All rights reserved)