State-by-State E-Fairness Campaign Builds

In April 2008, New York State passed into law an Internet Sales Tax provision, requiring online retailers with certain selling activities in the state to collect and remit sales tax on sales made in the state. At the time, there was media speculation that, with so many states projecting budget shortfalls and due to the struggling economy, other states were likely to introduce similar legislation.

Those predictions have proved correct.

In early February, less than a month after a New York State Supreme Court judge tossed out a lawsuit filed by Amazon.com challenging the Internet Sales Tax provision, a California lawmaker introduced legislation modeled on New York's statute. Soon after, legislators in three other states followed suit. Additionally, state legislators in Florida have expressed interest in joining the Streamlined Sales Tax Project (SSTP). Importantly, following the New York judge's decision, ABA bookstore members in the other 44 states that collect sales tax have been leading the charge in educating state and federal officials on the importance of e-fairness through ongoing letter-writing campaigns.

Intra-state e-fairness efforts launched by ABA members since the beginning of the year include:

• California. In a joint effort, in early February, the Northern California Independent Booksellers Association (NCIBA), the Southern California Independent Booksellers Association (SCIBA), and ABA asked California booksellers to contact their state assemblymembers in support of Assembly Bill 178, legislation that would clarify California sales tax law. Modeled on New York State's provision, the proposed California legislation would require out-of-state companies that have affiliates in the state to collect and remit sales tax. The bill was introduced on Monday, February 2, by Assemblywoman Nancy Skinner (D-Berkeley).
  
  To help California booksellers in this important advocacy outreach, NCIBA and ABA have prepared a template letter that booksellers can adapt and send to their assemblymember. The letter urges the legislator to support A.B. 178.

• Connecticut. In a joint initiative, launched in mid-February, the New England Independent Booksellers Association (NEIBA) and ABA are asking booksellers in Connecticut to contact their state lawmakers in support of S.B. 806, an Internet sales tax bill modeled on New York State's Internet Sales Tax provision. ABA has prepared a template letter that Connecticut booksellers can adapt to contact their respective state legislators to call for their support of the bill.
  
  In addition, Roxanne Coady of R.J. Julia Booksellers in Madison; Fran Keilty of Hickory Stick Bookshop in Washington Depot; and Suzy Staubach of UConn Co-op in Storrs, e-mailed fellow ABA members and urged them to contact their Connecticut legislators to ask them to support S.B. 806.
  
  ABA is also working with the Connecticut Retail Merchants Association (CRMA) to urge passage of S.B. 806.

• Florida. Last week, ABA encouraged Florida booksellers to urge their state lawmakers to craft Internet Sales Tax legislation modeled after New York State.
  
  ABA's callout to Florida bookstores was prompted by news that State Sen. Evelyn Lynn and State Rep. Michelle Rehwinkel Vasilinda had introduced legislation to bring Florida into compliance with the national Streamlined Sales and Use Tax Agreement (SSUTA). Though ABA favors a national solution to the issue of e-fairness, the association firmly believes that seeking an Internet sales tax solution modeled on the New York State law should not be considered mutually exclusive with pursuing SSTP.
  
  To help Florida booksellers in this important advocacy effort, ABA has prepared a letter that can be adapted and sent to Gov. Crist and to their state senator and representative. ABA has asked that booksellers include a "cc" to Sen. Evelyn Lynn and Rep. Michelle Rehwinkel Vasilinda on each of their letters.
  
  
• Hawaii. In February, legislators in Hawaii introduced legislation modeled on the New York State Internet Sales Tax provision, and ABA has prepared a template letter that Hawaii booksellers can adapt to contact their respective state legislators to call for their support of the bill.

• Minnesota. In a joint initiative, launched in mid-February, the Midwest Booksellers Association (MBA) and ABA are asking booksellers in Minnesota to contact their state lawmakers in support of S.F. 0282 and H.F. 401, Internet sales tax bills modeled on New York State provision. ABA has prepared template letters that Minnesota booksellers can use to contact their state lawmakers.
  
  In addition, Collette Morgan of Wild Rumpus in Minneapolis; Chris Livingston of The Book Shelf in Winona; Tripp Ryder of Carleton College Bookstore in Northfield; and Anita Zager of Northern Lights Books & Gifts in Duluth, have asked fellow ABA members in Minnesota to urge their local state senator and representative to support S.F. 0282 and H.F. 401, respectively.

• Virginia. In January, a Virginia bookseller's e-fairness efforts made the front page of the The Virginian-Pilot. Sarah Pishko of Prince Books in Norfolk contacted state authorities, including Tax Commissioner Janie E. Bowen and Delegate Paula Miller (D-Norfolk), to urge them to require Amazon.com to collect and remit sales tax for purchases made by Virginia residents since it operates two facilities, a fulfillment center and a data center, in the state.
  
  Following up on Pishko's efforts, a group of Virginia-based independent booksellers wrote to their state leaders to urge them to enforce existing sales tax laws by requiring Amazon.com to collect and remit sales tax for sales made in Virginia. In the letter, the booksellers stressed that "both federal law and the Tax Code of Virginia clearly state that any company with a physical presence in the Commonwealth -- via an office, warehouse, or a sales agent -- is required to collect and remit sales tax."
  
  
• National. ABA continues to call on booksellers in 44 states that collect sales tax to write to their state legislators today to urge them to follow New York's lead and introduce legislation that would clarify their state's existing tax laws. To help booksellers in this crucial endeavor, ABA has prepared a template letter that can be adapted and sent to their state legislators and to their governors as well.

ABA asks all members who take part in the e-fairness campaign to notify ABA Public Policy Liaison David Grogan at dave@bookweb.org when they have sent a letter to one of their legislators. This will help ABA compile information to support continuing sales tax lobbying efforts. --David Grogan