Small business owner Kim Williams of the Polka Dot Press in Tallahassee, Florida can compete against out-of-state online retailers every single day in many ways, but there is one area where she just cannot compete fairly: sales tax.
Like all local retailers, Kim is required to collect sales tax on every purchase made in her store. Taxes that go right back into her community and the local and state economy. But unlike Kim and other small retailers like her – which are at the core of every American town and city – national online retailers are not required to collect sales tax if they don’t have a physical presence in a given state or community.
This sales tax disparity hurts communities, dampens job growth, and costs local and state governments millions in uncollected sales tax.
In this new Retail Means Jobs video, Kim highlights the importance of retail to the local and national economy – retail supports one in four American jobs – details the significance of sales tax fairness to small businesses, and urges retailers to get educated and engaged on the legislative battle to pass the Marketplace Fairness Act.
Under the current sales tax system, local retailers like Kim are at a distinct disadvantage to out-of-state online retailers. As Kim and NRF maintain, the time has come to level the sales tax playing field so every retailer can compete and compete fairly.
Join us in our campaign for sales tax fairness here.