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updated: 4/22/2013 1:31 PM

White House: Obama backs Internet sales tax bill

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Associated Press

WASHINGTON -- The White House says President Barack Obama supports a bill to give states more authority to collect sales tax from Internet retailers.

White House spokesman Jay Carney says the Senate bill would level the playing field for small businesses and brick-and-mortar retailers that are undercut by online companies.

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Carney says that governors and mayors have overwhelmingly told the White House the bill is needed. He says states are losing out on revenue that could go to education, law enforcement, infrastructure investments and health care.

Under current law, states collect sales tax from companies that have a physical presence in their state. The Senate bill would expand that to include sales to people in other states.

The Senate is expected to hold a procedural vote on the bill on Monday.

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