Today the House of Representatives passed the Permanent Internet Tax Freedom Act (PITFA) by voice vote, legislation that would permanently ban state and local governments from taxing Internet access. In response, the Retail Industry Leaders Association reiterated its support for a legislative solution that addresses both the online sales tax loophole and the moratorium on taxing Internet access. Despite Senate passage of the Marketplace Fairness Act in 2013 on a strong bipartisan vote, the House has yet to vote on legislation that would close the sales tax loophole and restore free market competition between online and brick and mortar retailers. Jennifer Safavian, Executive Vice President for Government Affairs, issued the following statement regarding the retail community's continued push to find a common solution.
"Main Street retailers across America agree with Senators Lamar Alexander, Mike Enzi, Dick Durbin, and Heidi Heitkamp that sales tax parity should be addressed as part of legislation extending the moratorium on taxing Internet access. Retailers support keeping Internet access tax free while closing the online loophole that essentially subsidizes online-only retailers against their brick and mortar competitors.
"It's time for the government to take its thumb off the scale and give all retailers a fair shot to compete in the free market. Both pieces of legislation enjoy broad bipartisan support and should be part of a package that can be sent to the President's desk this year."
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.