Your Online Sales Tax Haven May Soon Vanish - FOX 26 News | MyFoxHouston

Your Online Sales Tax Haven May Soon Vanish

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If you purchase things online to avoid paying sales tax, your "free ride" might be coming to an end.

On Thursday, the US Senate is expected to vote on the Marketplace Fairness Act, which would require online retailers to collect sales tax. The funds would then be remitted to whichever taxing entity covers the buyer's shipping address.

Owners of "brick and mortar" stores, which already collect sales tax, say the legislation would level the playing field.

But CPA Bob Martin worries it could be burdensome to many internet-based businesses.

"The paperwork situation can be handled by the big companies; they have the software, they have the resources to do it," said Martin. "Who this is really hurting are the small businesses that don't have the resources."

"It would be harder for us to do," confirmed Mohsin Momin, one of the local entrepreneurs behind "But if we have to do it, then we have to -- to stay in business." operates out of a small southwest Houston warehouse, selling fashion-forward eyeglasses and sunglasses on the web.

Momin and his business partner, Azim Karedia, are not yet certain how they would comply with the Marketplace Fairness Act if it becomes law.

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