In 1992, well before the e-commerce boom, a United States Supreme Court decision prohibited states from requiring out-of-state sellers to collect and remit sales tax like their in-state competitors. However, the Court invited Congress to provide states the authority to compel collection. In the decision, the Court wrote, “the underlying issue [of whether remote sellers should be required to collect sales taxes] is not only one that Congress may be better qualified to resolve, but also one that Congress has the ultimate power to resolve.”
The federal government should not engage in picking winners and losers in the market and instead should treat all businesses the same. Broad bipartisan support for leveling the playing field exists in both chambers of Congress. RILA is committed to coordinating with allies to guide a campaign that closes the loophole once and for all.