Hardware Retailing The Industry's Source for Insights and Information
The U.S. Senate recently voted 69 to 27 to approve a bill to allow states to collect taxes from online sellers that make $1 million or more in gross sales annually. The Marketplace Fairness Act of 2013 will now move to the U.S. House of Representatives where passage is not as certain.
“This bill and its companion in the House will level the playing field for all retailers—both online and off—while safeguarding states’ rights,” said National Retail Federation President and CEO Matthew Shay. “And the bill does it all without raising taxes, new government mandates or adding to the deficit.”
The latest version of the Marketplace Fairness Act, introduced on Feb. 14, would tax online sales at the same rates those items are taxed in stores, and could shake up the current retail landscape. It includes an exemption for online sellers who made less than $1 million in the previous calendar year.
“The retail industry—the largest private sector employer—is rapidly changing and evolving,” said NRF Chairman of the Board Stephen I. Sadove. “Retailers compete for customers on many different levels, distribution channels and fronts, including service and selection, but they cannot compete on sales tax. Congress needs to address this sales tax disparity and allow retailers to compete freely and fairly. Retailers of all shapes, sizes and channels deserve a level playing field.”
