Senate Bill Gains Traction to Level Playing Field for Brick & Mortar Retailers

Seventy-five U.S. Senators showed their support for the Marketplace Fairness Act of 2013 which would allow local brick-and-mortar retailers to compete more effectively against out-of-state internet sellers.  An amendment summarizing the bill – which was introduced in February – was added to the FY2014 Budget Resolution which is currently being debated on the Senate floor.

While, a stand-alone bill still much be approved in both the House and Senate, the non-binding resolution shows overwhelming support for the controversial legislation in the Senate.  

“Today’s vote proves that an overwhelming majority of Senators support this bipartisan legislation to level the playing field for brick-and-mortar retailers,” Durbin said March 22.  “The Marketplace Fairness Act is a bill whose time has come in Congress and one that is long overdue for states, local governments and small businesses. I thank Senators Enzi, Alexander, Cardin, Heitkamp, Reed and many others for their efforts in securing support for this legislation.  In order for this bill to become law, we’ll need to stand up for businesses and retailers across America once again in the Senate with a decisive vote on the full Marketplace Fairness Act.  I expect a bipartisan coalition in the House will join us.”

The Marketplace Fairness Act of 2013 is cosponsored by 28 Republicans and Democrats in the Senate and 48 Republicans and Democrats in the House.  The bill currently has the support of over 268 labor, business and government organizations while 22 Governors (15 Republicans and 7 Democrats) have come out in support of leveling the playing field for businesses by addressing sales tax fairness.

Under the current tax loophole, while brick-and-mortar retailers collect sales and use taxes from customers who make purchases in their stores, many online and catalog retailers do not collect the same taxes. The Marketplace Fairness Act of 2013 would give states the option to require the collection of sales and use taxes already owed under State law by out-of-state businesses, rather than rely on consumers to remit those taxes to the States—the method of tax collection to which they are now restricted.

From SportsOneSource Media