To view NRF’s testimony to the House Judiciary Committee, click here.
To view NRF’s sales tax fairness website, click here.
NRF Encouraged by Congressional Momentum on Sales Tax Fairness
WASHINGTON, July 24, 2012 – The National Retail Federation today urged the House Judiciary Committee to support national legislation that would grant states the authority to require online sellers to collect sales taxes, stating that the current sales tax system unfairly burdens local retailers, shortchanges communities, and ignores the growth and advancement of e-commerce.
“The National Retail Federation has long supported sales tax fairness legislation, and we are encouraged by the momentum that is building toward a solution,” NRF Senior Vice President David French said. “As retailing evolves and Internet sales become a more prominent portion of total retail sales, it is critical that Congress support pro-small business reform of a broken sales and use tax collection system.”
“A federal solution to the Quill decision will allow states to broaden the base and apply their taxes equally to all items sold promoting an efficient sales tax system,” French said. “This reform is necessary to reduce the uncertainty currently rampant as shown by state-by-state attempts to establish nexus for collection purposes artificially stifling the growth and expansion of small and medium sized business across the country.”
French’s comments came in written testimony submitted to the House Judiciary Committee for a hearing scheduled to be held this morning on H.R. 3179, the Marketplace Equity Act, authored by Representatives Steve Womack, R-Ark. and Jackie Speier, D-Calif. The bill addresses the 1992 Supreme Court decision in Quill v. North Dakota, where the court said states can only require out-of-state sellers to collect sales tax only if they have a physical presence or nexus in the state.
“Allowing states to capture remote sales tax revenue equitably regardless of a retailer’s business model is meaningful pro-small business reform of a broken collection system,” French said. “This competitive disadvantage must be cured with Congressional action.”
As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs – 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s Retail Means Jobs campaign emphasizes the economic importance of retail and encourages policymakers to support a Jobs, Innovation and Consumer Value Agenda aimed at boosting economic growth and job creation. www.nrf.com