Who would win or lose on online sales tax

Major retailers and local stores will be the big winners if the House follows the Senate and requires Internet retailers to collect sales taxes on online purchases.

National and regional chains are tired of being showrooms for shoppers who then search their smartphones for lower prices and buy online. The chains say they are at a 5% to 10% price disadvantage by having to charge sales tax. "Retailers compete for customers on many different levels, distribution channels and fronts, including service and selection, but they cannot compete on sales tax," says Stephen Sadove, chairman of the board of the National Retail Federation and CEO of Saks Fifth Avenue. "Retailers of all shapes, sizes and channels deserve a level playing field." Local stores are sick of having to compete with online retailers who only have to charge sales tax to consumers in states where they have a physical presence. According to research from the University of Tennessee, states are missed out on more than $11 billion in uncollected taxes in 2012 from online purchases, .