WASHINGTON, D.C. (BRAIN) — A bipartisan group of U.S. senators has introduced a new version of the Marketplace Fairness Act, legislation that would allow states to collect sales taxes from e-commerce dealers who sell into their state, even if the retailer did not have a physical presence in the state. The Senate passed a similar bill last year, but it died when the House took no action on it.
The Marketplace Fairness Act of 2015 was introduced by Sens. Mike Enzi (R-Wyo.) and Dick Durbin (D-Ill). The legislation is co-sponsored by Sens. Lamar Alexander (R-Tenn.), Roy Blunt (R-Mo.), Bob Corker (R-Tenn.) Heidi Heitkamp (D-S.D.), Angus King (D-Maine), Jack Reed (D-R.I.), Sheldon Whitehouse (D-R.I.).
The National Bicycle Dealers Association, the Outdoor Industry Association and the National Retail Federation all support the bill.
"At some point this, or something like this, needs to be passed and signed into law to level the playing field between online and brick-and-mortar retailers. It is outrageous that many online sellers can avoid tax when those with physical stores collect it on every sale," said Fred Clements, the NBDA's executive director.
Those opposed to the bill include conservative lawmakers who view it as a new tax, or at least an extension of existing taxes. Lawmakers in states with no sales tax, such as New Hampshire, also oppose it because it would reduce their retailers' competitive advantages. And smaller online retailers (including Pro's Closet, whose owner wrote an op-ed on the subject for BRAIN last year) oppose in part because of the burden of filing taxes with multiple states.
