Sales Tax Initiative

On Sunday, July 1, under the parameters of a deal struck with the Texas comptroller’s office, Amazon.com will begin collecting and remitting sales tax to Texas for purchases made by state residents from Amazon and its many subsidiaries.

This week, Iowa Gov. Terry Branstad (R) urged his state’s U.S. senators to support the Marketplace Fairness Act, federal legislation that would allow states to require remote retailers to collect and remit sales tax in the state.

On May 30, New Jersey Gov. Chris Christie announced that that the state had come to an agreement with Amazon.com that will have the retailer begin collecting and remitting state sales tax in exchange for opening two new warehouses in New Jersey.

ABA is encouraging its members to reach out to their state governors and federal lawmakers in support of sales tax fairness legislation currently under consideration in the U.S. House and Senate.

In a letter to the U.S. Senate dated May 9, Michigan Governor Rick Snyder publicly announced his support for the Marketplace Fairness Act (S. 1832).

The New England Local Business Forum last week in Cambridge, Massachusetts, brought together partners in the book, bike, and toy industries to create a diverse environment for sharing innovative ideas and learning how to better grow local businesses.

The state of Texas has struck a deal with Amazon.com that will require the online retailer to begin collecting and remitting sales tax to the state for purchases by Texas residents beginning July 1, 2012. 

Last week, Nevada Gov. Brian Sandoval (R) announced the state had worked out a deal with Amazon.com that would continue the online retailer’s sales tax advantage over Main Street businesses for another two years.

In a blow to Illinois’ Main Street retailers, Cook County Circuit Judge Robert Lopez Cepero ruled Wednesday that a law requiring remote retailers with a broad network of online affiliates acting as sales agents in the state to collect and remit sales tax was unconstitutional.

This week, ABA submitted written testimony to the U.S. Senate Committee on Finance in support of the Marketplace Fairness Act (S. 1832), legislation that would give states the right to require remote retailers to collect and remit sales tax in the state, if they choose to do so.