A diverse coalition including retailers, real estate firms and state governments this fall is set to renew its decade-long push to require collection of online sales tax on out-of-state purchases, CongressDaily reported Friday. Aides to Sen. Michael Enzi, R-Wyo., and Rep. William Delahunt, D-Mass., said they are working on revamped versions of measures they introduced in the 110th and previous Congresses, although there is no timeline for introduction. Sources said they expect the "Main Street Fairness Act" to be unveiled as early as September.
Under a 1992 Supreme Court decision, retailers are not required to collect sales tax on online purchases in states where they do not have a physical presence, such as a warehouse, store or distribution center, although some states have passed laws requiring online collections. Supporters claim that leaves brick-and-mortar stores victimized by online retailers like Amazon and eBay that generally do not have to collect the tax and deprives states of billions of dollars in tax receipts annually.
Earlier this year, the jewelry stores' trade association wrote Enzi and Delahunt urging them to move quickly. Jewelers said they have been hurt by consumers browsing to get a sense of what they wanted, and then heading home to buy at online vendors like Blue Nile to avoid sales tax. "Internet retailers should not receive a tax advantage at the expense of traditional retailers and state and local governments," say August talking points from the International Council of Shopping Centers. Read the full story here (subscription required).
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