<P> In May 2013, the Senate passed the Marketplace Fairness Act, which would allow states to collect sales taxes for purchases made online . The legislation would give States the tools to collect sales taxes on cross-State sales transactions . The bill received support from retailers including Walmart and Amazon.com, who have claimed that it is unfair not to require online merchants to collect sales taxes . Groups like the National Retail Federation and the Retail Industry Leaders Association have said that requiring online vendors to collect sales taxes will help make brick and mortar retailers more competitive . However, U.S. House Speaker John Boehner stated that it would be difficult to implement such a system due to varying tax codes in different states . The National Taxpayers Union (NTU) spoke out against the bill, along with The Heritage Foundation, which indicated that it would harm Internet commerce and small businesses . Online retailer eBay believes it will hurt some of its sellers and lobbied Congress to exempt businesses that have less than $10 million in out - of - state sales or fewer than 50 employees . The Act failed to pass in either the 112th or 113th Congress . </P> <P> In October 2017, the state of South Dakota petitioned the Supreme Court to abrogate the Quill decision, citing the ease that online retailers can now determine the location and appropriate sales tax for purchases compared to the state of the Internet in 1992 . Several online retailers, including Wayfair, Overstock.com and Newegg, submitted petitions in opposition to South Dakota, stating that the impact will be difficult on small and medium - sized retails that would not have ease of access to these tools . The Supreme Court has agreed to hear the case South Dakota v. Wayfair, Inc. in its 2018 term, with oral arguments expected in April 2018 and a decision in June . </P> <P> There is no value added tax in the United States . There have been proposals to replace some Federal taxes with a value added tax . </P> <P> The use of sales taxes by U.S. states dates back at least to the Pennsylvania mercantile license tax that was initially introduced in 1821, though this and other early taxes were not broad - based . Buehler attributes development of modern state sales taxes to the depression era . He credits Kentucky with the first tax levied exclusively on retailers . The initial tax, passed in 1930, was progressive, but was replaced in 1934 with a 3 percent flat rate tax and then was eliminated in 1936 . The current Kentucky sales tax was adopted in 1960 . Commerce ClearingHouse credits Mississippi with the first sales tax, in 1930 . Forty - five states and the District of Columbia currently impose sales taxes (see Table 1). Twenty - four of the states first levied the tax during the 1930s, six in the 1940s, five in the 1950s, and eleven in the 1960s . Vermont was the most recent state to impose a sales tax, in 1969 . Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy general sales taxes . </P>

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