Christian Retailing

Retail groups applaud Senate passage of Marketplace Fairness Act Print Email
Written by Christine D. Johnson   
Tuesday, 07 May 2013 06:14 PM America/New_York

MatthewShay-NRF-WebThe National Retail Federation (NRF), Retail Industry Leaders Association (RILA) and CBA have praised the Senate passage of the Marketplace Fairness Act late Monday. The bill, S. 743, now moves to the House, where it is expected to face opposition.

Sponsored by Senators Mike Enzi (R-WY) Richard Durbin (D-IL), Lamar Alexander (R-TN) and Heidi Heitkamp (D-ND), the legislation passed the Senate by a more than two to one margin.

NRF issued the following statement from NRF Chairman of the Board Stephen I. Sadove of Saks and NRF President and CEO Matthew Shay on the bill’s Senate passage:

“We applaud Senators Enzi, Durbin, Alexander and Heitkamp and the entire U.S. Senate for standing with local retailers and America’s small business owners in a strong, bipartisan vote for final passage of the Marketplace Fairness Act, despite a highly funded misinformation campaign by the legislation’s opposition,” Shay said. “Today’s action in the Senate is a significant step for sales tax fairness and we look forward to a robust debate in the U.S. House of Representatives.”

Sadove said: “The retail industry—the largest private sector employer—is rapidly changing and evolving. 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.”

Shay added that the bill would “level the playing field for all retailers—both online and off—while safeguarding states’ rights,” noting that the bill “does it all without raising taxes, new government mandates or adding to the deficit.”

The Retail Industry Leaders Association (RILA) issued the following statement in response to the passage.

“The Senate’s overwhelmingly bipartisan passage of this legislation foreshadows the end of the special treatment of big online businesses at the expense of retailers on Main Street,” said Bill Hughes, senior vice president for government affairs. “After such a resounding vote in the Senate, we look forward to a constructive debate in the House to level the playing field for all retailers this year.”

CBA, the Association for Christian Retail, also supported the bill’s passage.

“CBA has been advocating along with other retail groups to pass this legislation that helps our members compete fairly in the marketplace,” said Curtis Riskey, the association’s president.

Riskey said CBA supported the legislation for three reasons:

“This is not new taxation. This is specifically taxation already on the books, but not enforced. CBA is not for increases in taxes, just fairness in collection.

“This will help level the playing field for small business. Again, when an online competitor is not required to collect sales taxes, brick-and-mortar retailers who follow the law can face as much as a 10% disadvantage.

“Small online-only retailers will be spared. Any small online-only retailer will not have to report sales under $1 million in revenue. This legislation also would simplify the tax administration process so online retailers only have to work with one agency and not 50-plus.”

 

Editor's note: A comment was added since this story's original publication.