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Senate Expected To Review Online Sales Tax Legislation

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Some local lawmakers say collecting sales taxes from online purchases will bring in extra revenue.
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Some local lawmakers say collecting sales taxes from online purchases will bring in extra revenue.

Consumers are supposed to calculate the sales taxes from what they buy online and then cut a check later on. But sometimes, that fails to happen.

When the Senate returns next week, it's expected to pass legislation forcing some online sellers to calculate the sales tax for other states. While critics say recouping that money amounts to a tax increase, Maryland Democrat Ben Cardin says the opposite is true.

"[It] will give our state the option to look at adjusting some of the tax rates," he says. "So this is big revenue. This is a lot of money that Maryland is losing every year."

Virginia could reap more than $250 million annually from the measure, while Maryland could see as much as $300 million. The legislation is expected to easily pass the Senate, which has already overcome procedural hurdles to the bill. But it's unclear if there's enough support to get it through the House.

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