Retailers favor Marketplace Fairness Act

The National Retail Federation – the world’s largest retail trade group – today (May 6) spoke out in favor of the Marketplace Awareness Act that requires online retailers to charge and collect sales tax on all e-commerce transactions.

The Senate passed the bill with a 69-27 vote. The bill goes to the House of Representatives, where some Republicans oppose it as a new tax.

Rep. Steve Womack, R-Rogers, is a strong supporter of the legislation is a strong supporter of the legislation.

At this time only firms with a physical presence in a state must charge online sales taxes.

“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, bi-partisan vote for final passage of the Marketplace Fairness Act, despite a highly-funded misinformation campaign by the legislation’s opposition,” said NRF President and CEO Matthew Shay. “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.”

NRF Chairman Stephen I Sadove of Saks Incorporated, noted in the release that the entire retail industry 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,” Sadove said.

The trade group said it will continue to work with a bi-partisan group in the House to get the bill passed there and signed into law.