By Jim Puzzanghera
April 25, 2013, 4:25 p.m.

WASHINGTON – The Senate on Thursday failed to pass bipartisan legislation that would allow states to collect sales taxes from larger Internet retailers, but the bill cleared a key procedural hurdle and is on track for approval after lawmakers return from a recess.

Momentum has been building for the Marketplace Fairness Act, which is strongly supported by most state and local governments and traditional brick-and-mortar retailers. But opposition from some online retailers, led by EBay Inc., and a small group of senators largely from states that do not have sales taxes derailed the legislation temporarily.

The Senate voted 74 to 20 on Monday to begin considering the bill, and supporters anticipated it would easily pass this week.

But attempts to broker a deal with opponents led by Sens. Max Baucus (D-Mont.) and Ron Wyden (D-Ore.) were unsuccessful. With lawmakers eager to leave town for the scheduled break, Senate Majority Leader Harry Reid (D-Nev.) forced a vote Thursday to cut off debate.

The procedural measure, which needed 60 votes, passed 63 to 30.

Reid said a vote on final passage of the bill would take place May 6. The measure is expected to be approved then.

To read entire story, click here.