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Abstract: 

The U.S. Senate recently passed Marketplace Fairness Act of 2013—by a significant margin—that would authorize states, under certain conditions, to require remote sellers to collect and remit sales and use taxes on sales into the state. The Senate bill, S. 743, is now in the hands of the Judiciary Committee of the House of Representatives. Although the bill could face greater opposition in the House than in the Senate, some observers believe the prospects for final resolution of the issue may be far better now than in the past. The authors examine the potential effects this legislation may have on banks and other providers of financial services if it is enacted, and also look at other related developments and potential future developments that could impact the industry.

Keywords: S. 743; sales taxes; remote sellers; traditional banking services; investment counseling; information services

Affiliations:  1: KPMG LLP; 2: KPMG LLP; 3: KPMG LLP.