Sales Tax Initiative

ABA announced this week that it is inviting independent association executives and independent business advocacy groups and their members to Washington, D.C., to advocate on behalf of a national sales tax fairness solution.

This week, a coalition of small businesses joined Rep. Jackie Speier and Rep. Steve Womack in Washington, D.C., for the introduction of the Marketplace Equity Act.

Tennessee has become the latest state to negotiate an agreement with Amazon.com that would postpone the date by which the online retailer must collect state sales tax.

According to a study released this week, New Jersey lost $171 million in non-collected sales and use tax on business-to-consumer Internet purchases of goods and services from out-of-state vendors in 2009.

On Friday, September 23, Gov. Jerry Brown signed an amended sales tax fairness bill that was the result of a last-minute deal California lawmakers made with Amazon.com.

On Tuesday, Michigan state representatives Eileen Kowall (R) and Jim Ananich (D) joined with bricks-and-mortar retailers, including Matt Norcross of McLean & Eakin Booksellers, at a press event to introduce the Michigan Main Street Fairness Act.

A new study released this week estimates that over the next five years, the failure of remote, online retailers to collect sales tax will cost the state of Tennessee more than 10,000 jobs and about $3 billion in revenue.

ABA is urging members to contact their senators and governor in support of the Main Street Fairness Act, which was introduced by Sen. Dick Durbin in late July. A template letter that can be adapted and sent is available.

Late Friday, September 9, California legislators voted overwhelmingly to approve an amended sales tax fairness bill that would provide Amazon.com with a one-year sales tax exemption while increasing the minimum small business exemption to $1 million from $500,000 in annual sales.

At this month’s SIBA trade show, attendees will have an opportunity to hear an important update on the e-fairness fight from a national and regional perspective, to learn what’s unfolding in key battleground states (including South Carolina, Virginia, and Florida), and to ask questions about what can be a complex and confusing issue.