The US Senate has passed legislation that will subject online shopping to state sales taxes.

Under current law, states can only require retailers to collect sales taxes if the store has a physical presence there.

For example, retailers like Wal-Mart or Target collect sales taxes when they sell goods over the internet, but online retailers like Amazon don't have to collect sales taxes, except in states where they have offices or distribution centres.

"This bill and its companion in the House will level the playing field for all retailers - both online and off - while safeguarding states' rights. And the bill does it all without raising taxes, new government mandates or adding to the deficit," said National Retail Federation (NRF) CEO Matthew Shay.

The Senate passed the bill by a vote of 69 to 27.