Source: J.D. Harrison, Washington Post ( Free Registration )

The Senate on Monday moved forward on legislation giving states more authority to collect sales tax on transactions made over the Internet, which would level the playing field for online and offline businesses — but it could also pose major challenges for small merchants who sell across the state lines.

The Marketplace Fairness Act would allow states to tax retailers from outside their borders that sell goods to their residents. Right now, that is only permitted if the retailers themselves have an actual presence in the state.

Read Full Article: Senate moves ahead on online sales tax