A coalition of brick and mortar retail store owners gathered in Washington, D.C. Thursday asking Congress for action on online sales tax.
“Fairness” and “equal playing field” were the words used by both Reps. Steve Womack, a Republican from Arkansas, and Jackie Speier, a Democrat from California, the co-sponsors of current legislation.
“If we’re absolutely committed to small business, it’s time” to pass the offered Marketplace Fairness Act, that would require sales tax be collected for all online sales, Speier said.
The Marketplace Fairness Act is being pushed by advocates to “even the playing field” between online retailers, that are not required to collect sales tax unless there is a physical presence in a state, and brick and mortar retailers who already do collect sales tax.
“Close this loophole and give the people behind me an honest chance to compete,” Womack said at the press conference, referring to the roughly two dozen retail owners who appeared and spoke at the press conference.
Last month, an amendment with online sales tax language was added to the Senate budget proposal and passed with an overwhelming majority, 75-24.
With the Senate’s sign of approval, the spotlight in now on the House of Representatives to determine the fate of the Marketplace Fairness Act. The proposal has gathered widespread bipartisan support, but still, the next step seems unclear.
While brick and mortar stores decry an unfair playing field, many online retailers say they would be subject to a crippling tax collection burden.
The congressmen emphasized that as more shopping is done online, local and county governments will be missing out on revenue without an online sales tax.
The next step forward for the Marketplace Fairness Act is uncertain. Womack expressed his interest in seeing the bill have another hearing and a markup and the possibility of it being attached to other legislation still remains.
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