For over two decades, a loophole in federal law has allowed online-only retailers to avoid collecting state sales taxes, giving them a government- sanctioned price advantage over local brick and mortar businesses. As digital commerce continues to grow, this disparity amounts to a 5-10% advantage that distorts free market competition. All retailers, no matter their physical presence, should have a level playing field in today's marketplace. As Americans increasingly "shop anywhere," it is vital that sales tax laws reflect 21st Century commerce.
RILA believes companies that do not have a physical location should play by the same sales tax rules as companies that sell through brick-and-mortar stores or brick-and-click platforms.
While Congress has not been able to agree upon legislation to address this issue, the U.S. Supreme Court has agreed to take up the issue. The Court hard oral arguments in the case, South Dakota v. Wayfair, in April 2018 and is expected to issue a decision in June.
RILA will push to ensure that 2018 is the year that the playing field will be leveled for retailers, once and for all.