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Contact Senators Franken and Klobuchar to thank them for their support on bill that would require online retailers to collect state and local sales taxes.
(Published Apr 19, 2013)
Yesterday, Senate Majority Leader Reid (D-NV) filed for cloture on S. 743, the Marketplace Fairness Act, which could be voted upon as early as Monday, April 22, 2013. Senator Al Franken is a coauthor of the bill. Senator Klobuchar voted in support of the measure in a nonbinding budget amendment in March.
The Marketplace Fairness Act, a top legislative priority for NLC, allows state and local governments to compel the collection of sales taxes on online and remote sales that already are owed. It does not create any new tax or increase any existing tax; it simply provides for the enforcement of state and local governments’ authority. Additionally, the Act aims to level the playing field between traditional brick and mortar retailers who are required to collect sales taxes at the time of purchase and the on-line retailers who are not.
It is estimated that state and local governments are currently losing almost $23 billion annually from such sales. For Minnesota, the estimate is close to an astounding $500 million annually.
Business groups and large online retailers like Amazon now join state and local governments in supporting the legislation.
Recently, a nonbinding vote of 75-24 (as part of the Budget Amendment vote) shows broad support for the bill.
Some members of the Senate Finance Committee may push back for procedural reasons since Majority Leader’s Reid motion effectively bypasses the committee process. NLC's view on this is that the issue had two hearings in the Senate Finance Committee and two hearings in the House Judiciary Committee during the last Congress, and it’s time to move forward to level the playing field.
Questions? Contact Laura Ziegler at(651) 281-1267 or email@example.com
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