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NCSL Statement on Senate Marketplace and Internet Tax Fairness Act

NCSL Statement on Senate Marketplace and Internet Tax Fairness Act

7/17/2014

NCSL NewsSenators Introduce Act to Level Playing Field for Local Retailers

Washington, D.C.—Senators Michael Enzi (R-Wyo.) and Richard Durbin (D-Ill.) introduced Senate Bill 2609, the Marketplace and Internet Tax Fairness Act, on Tuesday that aims to level the playing field for local retailers.

The National Conference of State Legislatures has long supported marketplace fairness and it is estimated that states are losing more than $23 billion per year in uncollected sales taxes. This is a result of not being able to collect sales taxes on remote purchases, including transactions over the Internet. 

“We applaud Senate leaders today for advancing the Marketplace and Internet Tax Fairness Act,” Nevada state Senator and NCSL President-elect Debbie Smith said. “This effort by Senate leaders will help give local retailers a fighting chance to compete and that means ending the decades-old tax collection exemption for their large out-of-state competitors. This measure allows states the option of using these additional revenues to reduce other state taxes and/or invest in needed infrastructure improvements, education advancements and public safety.”

Utah state Senator and NCSL Vice President Curt Bramble added, “It is time to put this issue to bed and help save our main street businesses. It is important for consumers to know that the only cost for access to the Internet is what they pay their Internet service provider and America’s main streets should be assured that the playing field will no longer be tilted in favor of online sellers.”

A component of Senate Bill 2609 also contains what is known as the Internet Tax Freedom Act (ITFA), which prohibits states from imposing any tax on access to the Internet. While NCSL does not oppose an extension of ITFA, NCSL strongly supports the addition of the Marketplace Fairness Act.

The Marketplace Fairness, Senate Bill 743 was introduced by U.S. Senators Enzi and Durbin and overwhelmingly approved by a bipartisan vote in the Senate last year.

Learn more about NCSL’s position, testimony before Congress and letters to Congress. click here - http://www.ncsl.org/research/fiscal-policy/collecting-ecommerce-taxes-an-interactive-map.aspx

NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.  

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