The U.S. Senate is expected to vote Monday evening on the S.743, the Marketplace Fairness Act, which enables states to collect sales tax on sales made within their jurisdiction by out-of-state retailers.
In a letter delivered Monday, the National Retail Federation urged members of the U.S. Senate to approve the legislation and reminded them that their vote will determine what support they get from NRF in the future.
The Marketplace Fairness Act is a commonsense piece of legislation necessary to modernize and streamline our federal and state understanding of sales tax laws so that they can keep current with real world change in the marketplace, said NRF Senior Vice President David French in the letter.
As the retail industry evolves and digital commerce becomes a more prominent portion of total retail sales, it is critical that the tax laws not discriminate between businesses based on how their products are distributed, French said.
This collection disparity has tilted the competitive landscape against local stores, creating a crisis for brick-and-mortar retailers around the country and in your state, French said. The Marketplace Fairness Act addresses the crisis by removing the constitutional limitation on states authority to collect sales tax from out-of-state sellers.
Leveling the playing field will create a business climate where retailers have a better opportunity to grow and create jobs in a truly competitive and fair marketplace, he said.