Boise (670 KBOI News) – Idaho is one step closer to having sales tax charged automatically on everything bought online.
House Bill 578 cleared the full House Friday, on a 46-21 vote. It would require all online retailers doing business with people in Idaho to add the state’s 6% sales tax to all purchases.
During the floor debate, Representative Ron Nate of Rexburg argued against the bill, saying Article 1, Section 10 of the U-S Constitution specifically said states could not charge tax on things brought in from other states.
“I know our common understanding of the words ‘imports’ and ‘exports’ tend to make us think of international trade,” said Nate. “But ‘imports’ and ‘exports’, in the US Constitution, refers to trade across state borders.”
He said Congress was given the power to regulate trade to keep states from waging trade wars with one another.
But supporters argued not making online retailers charge sales tax gives them an unfair advantage over brick and mortar stores.
The bill now goes to the Senate.