PROVIDENCE, R.I. (WPRI)- Local businesses says a bill now being considered in Congress that would end tax-free shopping online would help them right here in Rhode Island.
The United States Senate is set to vote on the Online Fairness Act, which would require online retailers to tax purchases and send the revenue to the state in which the shopper lives.
Rhode Island small business owners say a tax on internet sales would make local businesses more competitive, and that it's the right move.
Matthew Bird has owned Providence's "The Curetorium" for seven years. He says he faces stiff competition from some online retailers that don't have to charge sales tax.
"There are a lot of times when people come into the store and they fall in love with an item. They take a picture or record it somehow so they can go find it later online," said Bird.
But not everyone supports the bill.
Opponents of the bill say it could put an unfair burden on online businesses and consumer advocates say the bill could actually hurt shoppers.
"Any time you increase the cost to consumers, from the consumer's perspective, that's a bad thing," Bird said.
States claim they lost out on $23 billion in revenue last year because they couldn't tax online sales.
The Senate is scheduled to vote on the bill May 6.
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