NRF: E-tailers Should Collect Sales Tax, Too
Contending that online sellers have an unfair price advantage over Main Street stores, the National Retail Federation (Washington) is urging federal lawmakers to support legislation that would require Internet retailers to collect sales tax just as local merchants do.
“As retailing evolves and Internet sales become a more prominent portion of total retail sales, it is critical that Congress address the sales tax collection discrimination that exists between brick-and-mortar and remote retailers,” said David French, NRF senior vice president for government relations, in written testimony before the House Judiciary Committee.
Online sellers are already required to collect sales tax from customers in their own states. However, a 1992 U.S. Supreme Court decision held that Internet retailers are required to collect sales tax from out-of-state customers only if the seller has a store, warehouse or office in the customer’s state. Otherwise, the court ruled, it would be too complicated for a retailer to know how much tax to collect, given the thousands of state and local sales tax systems across the nation.
Three bills that would address the issue—the Main Street Fairness Act, the Marketplace Equity Act and the Marketplace Fairness Act—are pending in Congress. To download a side-by-side comparison of the bills, visit http://www.retailmeansjobs.com/salestaxfairness. [February 2012 PET AGE]
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