Local retailers like Teresa Miller of Treats Unleashed and Jim Adams of Falls Road Running Store compete with national, online retailers on customer service and product selection every single day. But there is one aspect where these local retailers are at a disadvantage: sales tax.
Unlike brick-and-mortar stores, who are required to collect and remit state and local sales tax, online retailers have a virtual pass on sales tax collection. This sales tax loophole artificially and unfairly inflates consumer prices and hampers local retailers’ ability to compete on the same terms. Not only does the sales tax loophole negatively impact local retailers but it also hurts America’s towns and communities who rely on sales tax revenue for essential services, such as funding for police, firefighters and school teachers.
That is why Teresa, Jim and other small business owners, entrepreneurs and retailers have joined with NRF to urge Congress to address sales tax fairness.
These retailers know that we need to streamline, simplify and level the sales tax playing field so every retailer can compete fairly – be it on Main Street or online. Only when Congress acts can retailers like Teresa and Jim truly compete on service, selection and price.
2 Comments
As a ebay seller, I pay sales tax to the state I live and do business in. So, how does this hurt any small business in my area. I resell items I find at yard sales, auctions, and estate sales. These items have already had the taxes paid when purchased new. I also mail items to the customers door. Lets really level the field and force everyone to be rated and charge them more if they have less than an almost perfect customer feedback…….quick crying because you can’t provide a customer service and also sell across the country and world. You have the same opportunity to sell on-line as everyone else. Lets really level the field and make every business pay the exact same rent or lease price by the square foot. The exact license fees per location. the exact same wholesale prices if you buy one dozen items or 10,000 dozen. Also everyone sells for the exact same price!!!
Thank you for your comment. We appreciate your feedback. Because the Marketplace Fairness Act exempts sellers with less than $500,000 in annual out-of-state sales and the used items you sell are often tax-exempt, you aren’t the type of merchant that this legislation would affect. But when an e-tailer sells new merchandise without collecting the sales tax that must be collected by the main street retailer it is a huge competitive disadvantage, given the very slim margins within which retailers operate. It’s time to level the playing field so all retailers — no matter which channel they sell in — can remain competitive. While a number of states have passed their own legislation attempting to address the issue, NRF believes the solution to sales tax collection must be mandated by federal law; be fair and apply to all sellers; and be flexible enough for states to adopt and sellers to comply.