The senate discussed Thursday to incorporate the legislation as an amendment to its budget resolution and plan to vote on Internet sales tax bill as early as Monday, Washington Post reported.
Large Internet retailers, such as Amazon are worried the tax would increase the cost and create surcharges for the business, Reuters reported.
On the other hand, small retailers seek this bill as an opportunity to compete with large Internet retailers, Reuters reported.
The essence of Internet shopping is that the retailers wouldn't have to collect sales tax as long as they don't have a physical store in the state where consumers shop, Washington Post reported.
Few people do or are aware of the fact that they have to track online purchases and may owed taxes in their annual fillings to the IRS.
If the bill passes, consequently, the local government would gain $11 billion per year in added revenue that Internet retailers are legally owed, Washington Post reported.
"I cannot think of an instant where this Congress has legislated that a state can go into another state and enforce taxation laws," Montana Senator Max Baucus, the Democrat who preside the Finance Committee, said. "This is revolutionary."
Senator Al Franken, a Democrat from Minnesota, said the Internet sales tax bill would make possible for small online businesses to compete with extensive retailers across Minnesota and the country, Reuters reported.