Leading Retailers Urge Senate to Vote Yes on MFA
RILA Issues “Key Vote Alert” On Top Industry Priority
- By [ Jason Brewer ]
- Arlington, VA
- 04/19/2013
“The retail industry is fiercely competitive and RILA members compete aggressively based on selection, services and price. But today’s marketplace is neither fair nor fought on a level playing field because of an outdated government policy,” said Bill Hughes, senior vice president for government affairs.
Last month, by of vote of 75 to 24, the Senate approved similar language as an amendment to the FY 2014 Budget Resolution introduced by the bipartisan sponsors of the Marketplace Fairness Act, Senators Mike Enzi (R-WY), Dick Durbin (D-IL), Lamar Alexander (R-TN), Heidi Heitkamp (D-ND).
“It’s inherently unfair to ask two sets of the same competitors to play by different rules, which is what happens today when online merchants are not required to collect state sales taxes currently owed,” said Hughes. “The Marketplace Fairness Act simply provides states with the authority – if they so choose – to require online sellers to collect sales taxes just like brick and mortar and many of their dot.com websites already do today.”
The Marketplace Fairness Act was outlined in RILA's 2013 public policy agenda as one of the top priorities for the industry: Retail Industry Leaders Association 2013 Public Policy Agenda: Empowering Retailers and Consumers to Grow the Economy.
Similar legislation in the U.S. House of Representatives introduced by Representatives Steve Womack (R-AR) and Jackie Speier (D-CA) has generated strong bipartisan support.
“Please vote for the Marketplace Fairness Act so that state’s rights and fair competition are restored,” concluded Hughes.
Full Letter text Below:
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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April 19, 2013
TO THE MEMBERS OF THE UNITED STATES SENATE:
On behalf of the Retail Industry Leaders Association (RILA), I am writing to urge that you vote “YES” on the Marketplace Fairness Act (S. 743). This bill is offered by Senators Mike Enzi, Richard Durbin, Lamar Alexander and Heidi Heitkamp, and seeks to get the government out of the business of picking winners and losers in the marketplace with respect to tax policy. The Marketplace Fairness Act simply provides states with the authority to collect sales taxes that are already rightly owed to the states under existing law today.
By way of background, RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturer facilities and distribution centers domestically and abroad.
The retail industry is fiercely competitive and RILA members compete aggressively based on selection, services and price. But today’s marketplace is neither fair nor fought on a level playing field because of an outdated government policy. Due to a decades old Supreme Court decision, brick and mortar merchants are put at a competitive disadvantage to pure online retailers simply because they have a physical presence in the state. It’s inherently unfair to ask two sets of the same competitors to play by different rules, which is what happens today when online merchants are not required to collect state sales taxes currently owed.
The Marketplace Fairness Act simply provides states with the authority – if they so choose – to require online sellers to collect sales taxes just like brick and mortar and many of their dot.com websites already do today. Merchants aren’t looking for a handout; they simply want everyone to play by the same set of rules. Importantly, the bill exempts sellers who sell less than $1 million in remote sales annually; requires states to provide free software to online sellers; and, provides liability protections in order to hold small sellers harmless from software errors.
In closing, RILA urges that you vote for cloture on the Marketplace Fairness Act (S. 743) and they underlying bill, which is consistent with a similar amendment offered during the Senate’s consideration of the Budget Resolution and which passed by a vote of 75-24. The Supreme Court’s 1992 decision was handed down before the growth of the Internet, yet this loophole allows online giants to evade sales tax collection which makes little sense in today’s digital age. Please vote for the Marketplace Fairness Act so that state’s rights and fair competition are restored.
Please be advised that votes on the Marketplace Fairness Act will be a “KEY VOTE” and will be evaluated on RILA’s 2013 Legislative Scorecard and shared with our membership broadly.
