WASHINGTON (BRAIN) — Retail trade groups are applauding the re-introduction of federal legislation that would allow states to collect taxes on goods and services purchased by their residents online, even if the seller was out of state.
Nearly identical legislation passed the Senate last year but was not addressed in the House. On Thursday, legislation was re-introduced in each chamber.
The House's Remote Transactions Parity Act (H.R. 2193) was reintroduced in the House by Reps. Kristi Noem (R-AL), Steve Womack (R AR-3), Jason Chaffetz (R UT-3), Steve Stivers (R OH-15), Lou Barletta (R PA-11), John Conyers (D MI-13), Jackie Speier (D CA-14), Peter Welch (D VT-AL), Suzan DelBene (D WA-1), and David Cicilline (D RI-1).
The Senate's Marketplace Fairness Act (S. 976) was reintroduced by Senators Lamar Alexander (R TN), Mike Enzi (R WY), Dick Durbin (D IL), and Heidi Heitkamp (D ND).
The National Sporting Goods Association and the National Retail Federation were among the groups that support the legislation.
"NSGA has vigorously supported these bi-partisan bills and urges Congress to make 2017 the year when the unfair sales tax loophole is finally legislated out of existence," NSGA president & CEO Matt Carlson said. "For far too long, online-only retailers have enjoyed an unfair advantage by avoiding sales tax. I'm sure our brick and mortar sellers would like to enjoy the same advantage, but they're required to collect taxes."
NRF's David French said, “With more states passing sales tax laws or going to court, pressure is building on Congress to finally address this issue,” said. “The states know they can’t fix this on their own, but they agree with retailers that Congress has stalled for far too long. Online sellers should not continue to receive an unfair price advantage.” French is the NRF's senior vice president for government affairs.
The U.S. Supreme Court ruled in 1992 that out-of-state sellers can be required to collect sales tax only if they have a physical presence in the state such as a store, warehouse or office.
