PROVIDENCE, R.I. (AP) — Gov. Lincoln Chafee (CHAY'-fee) is calling for the U.S. House of Representatives to pass a law that would limit tax-free shopping on the Internet.
The Senate on Monday passed the bill, which allows states to collect sales taxes from Internet purchases. The bill faces opposition in the House, where some lawmakers regard it as a tax increase.
Chafee says in a written statement that he’s pleased the bill passed the Senate overwhelmingly. Chafee says if it passes the House and is signed into law, it will level the playing field between online retailers and local Rhode Island businesses.
Chafee also says that if it passes, it will trigger an automatic sales tax rate decrease from 7 percent to 6.5 percent.