Amazon has agreed to build two fulfillment centers in New Jersey that will begin operating next July, when the online retailer will begin collecting and paying state and local sales taxes on its sales within the state, New Jersey Gov. Chris Christie announced Wednesday.
At the press conference announcing the deal, Christie urged Congress to support Sen. Lamar Alexander’s Marketplace Fairness Act to give states the option to decide how to deal with the current sales tax collection loophole. Gov. Christie’s statement is another strong conservative voice in the growing chorus for Congressional action.
“There’s been no bigger issue facing retailers than sales tax fairness,” said John Holub, President of the New Jersey Retail Merchants Association. “Governor Christie’s support for the Marketplace Fairness Act is great news and adds add to the momentum for Congress to level the playing field for all retailers.”
Gov. Christie expressed his support for the Marketplace Fairness Act during a press conference to announce a deal with Amazon where the company will begin collecting and remitting sales tax on orders placed by New Jersey residents no later than July 1, 2013.
Gov. Christie joins a growing group of prominent conservative leaders, including Gov. Mitch Daniels of Indiana and Gov. Rick Snyder of Michigan, in support of a federal solution for the sales tax collection loophole. The remarkable growth of e-commerce and “omnichannel” retailing have highlighted the problem, and Congress must act to give states the ability to level the playing field for all retailers. The Marketplace Fairness Act, S. 1832, gives states that option if minimum simplifications to their sales tax code are put in place.
Retail is retail: online or in a store, all retailers should be able compete on a level playing field without state sales tax codes picking winners and losers. Real retailers face this issue on a daily basis. Teresa Miller, owner of Treats Unleashed pet supply store in St. Louis, explains the sales tax collection issue hurts retailers’ “ability to plan because things are not set out for the future
if things were simplified and planned we would really know better how to compete in the online space and in the different communities.”
Gov. Christie’s endorsement comes only days after NRF kicked off our 60-day e-fairness campaign to raise awareness with lawmakers and the public about the sales tax collection loophole. Join retailers in your community like Teresa and tell Congress it’s time to pass the Marketplace Fairness Act by signing our e-fairness campaign petition today.
