Internet Sales Tax: Some States are counting their Chickens before they Hatch

Congress hasn't yet agreed to end tax-free shopping on the Internet, but some states already are planning how they'll spend the money. 

Maryland and Virginia both passed transportation bills that counted on the revenue to avoid implementing future state gas-tax increases, which would kick in if Congress turns down the Internet-sales tax bill. In Missouri, residents could see a half-percentage-point cut on their personal income taxes if Congress approves it.

And in the nation's capital, two city council members recently suggested spending the estimated $49 million the District of Columbia would collect from online-sales taxes in 2014 on housing for the homeless. 

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Congress is considering legislation that would allow states to require businesses to collect taxes on goods or services sold online, over the phone or by catalog. Early this month, the Senate approved the legislation on a 69-27 vote.

The bill faces an unclear future in the House. Some conservatives have raised concerns about the legislation, saying it would essentially be a new tax on consumers, who would have to pay sales taxes that they have mostly avoided. House Speaker John Boehner (R., Ohio) has said he might not support the bill because of concerns it would be tough to implement and could hurt small businesses.

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