"We believe that this is the year they [members of Congress] will finally stand up for local businesses that create jobs and support our communities," said Betsy Laird, senior vice president of Global Public Policy for the International Council of Shopping Centers in New York.
CLEVELAND, Ohio -- Advocates of an online sales tax that they say would help small businesses compete with online retailers have reintroduced the bill in Congress with renewed optimism that it will pass this year.
The Marketplace Fairness Act of 2015, which aims to "restore States' sovereign rights to enforce State and local sales and use tax laws," is almost word-for-word the same as its predecessor bills introduced in 2011 and 2013.
The proposal aims to correct a legal exception that now allows online sellers including Amazon.com and eBay.com to avoid charging and collecting sales tax in states where they don't have a warehouse or other physical presence. That gives them a 7 percent to 8 percent price advantage over brick-and-mortar stores who must charge sales tax, and also gives consumers the impression that such purchases are "tax-free." One group estimates that the State of Ohio lost tens of millions of uncollected tax revenue from Ohioans who bought their 2014 holiday gifts from online sellers.
The Marketplace Fairness Act of 2013 was passed by the Senate in a 67 to 29 vote (including both Ohio senators), but the House version languished for more than 18 months before expiring in December as members of Congress headed home for the holidays.
Betsy Laird, senior vice president of Global Public Policy for the International Council of Shopping Centers, said MFA's supporters are optimistic about the 2015 version's prospects for several reasons. "With 60 votes in the Senate, it is now up to the House to move forward with legislation," she said. "We believe that this is the year they will finally stand up for local businesses that create jobs and support our communities."
"Unfortunately retailers of all sizes continue to spend their precious time and energy trying to educate lawmakers about the need for a level playing field because brick-and-mortar retailers are getting hit on multiple fronts. They are forced to compete against a de facto government subsidy, and they have to deal with higher property taxes and unnecessarily high sales taxes as a result of the eroding tax base.
"They are fed up!" Laird said. "The Senate has shown that it is ready and willing to level the playing field for all retailers. It is now up to the House to act."
"As long as this issue remains unresolved and Main Street businesses continue to suffer, Republicans look bad. Keep in mind that the moratorium on Internet access taxes (ITFA) lapses September 30. We believe the almost certain extension of ITFA presents a likely legislative vehicle to deal with e-fairness in 2015."
The International Council of Shopping Centers, the New York City-based global trade association for the shopping center industry, is urging passage of the Marketplace Fairness Act of 2015 in the 114th Congress. "This legislation marks an ongoing commitment of the upper chamber to take decisive action to end the special treatment afforded online-only sellers at the expense of brick-and-mortar retailers," ICSC said in a written release.
"The shopping center industry would like to thank Senators Mike Enzi, R-Wyoming; Dick Durbin, D-Illinois; Lamar Alexander, R-Tennessee; and Heidi Heitkamp, D-North Dakota, for their steadfast support and tireless work to ensure that online-only sellers compete with brick-and-mortar retailers on price, service and convenience -- now without a tax advantage," said ICSC President and Chief Executive Michael P. Kercheval, in a statement.
"The Marketplace Fairness Act of 2015 will get the government out of the way, restore the free market and close the loophole that has given an unfair advantage to online-only sellers like eBay and Overstock for over a decade," ICSC said.
"ICSC has promoted e-fairness for over a decade, advocating that a sale is a sale, regardless of whether the purchase takes place on Main Street, at shopping centers, or over the Internet."