In what has become a familiar dance, a new bill allowing states to collect sales taxes from online purchases has split associations representing brick-and-mortar retailers from their e-commerce counterparts.

Currently state and municipal governments have little authority to collect sales taxes from online purchases unless the retailer has a physical presence within a state's borders. The Remote Transactions Parity Act would change that by closing what critics say is a loophole that puts physical businesses at a competitive disadvantage to online competitors.

"Online sellers no longer need special treatment—it's time for Congress to close the online loophole and restore basic free market competition for retailers across the country," said Jennifer Safavian, executive vice president for government affairs for the Retail Industry Leaders Association.

RILA represents traditional brick-and-mortar stores. So does the National Retail Federation, which issued a similar statement saying the current legal situation "distorts competition, the free market and unfairly favors online sellers at the disadvantage and expense of local communities, merchants and small business owners and their employees."

Congress has taken up online sales tax bills in the past but they have always failed to muster enough votes to pass. Part of the reason is the reluctance by some lawmakers to approve legislation that would result in more taxes for consumers. Another reason is opposition by online retailers who say abiding by the nation's patchwork of state and local sales tax laws would be an administrative nightmare.

The bill "lets all 10,000 local tax jurisdictions impose unique rates, tax holidays, thresholds, and caps," the e-commerce association NetChoice said in a statement. "Each of the 46 states can still have its own definition for taxable products and services and a unique definition for key terms like ‘sales price.' And each state can require its own filing form and payment mechanism."

The bill is sponsored by Rep. Jason Chaffetz (R-Utah).

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