Marketplace Fairness Act of 2015

Marketplace Fairness Act reintroduced into Congress

“E-Fairness” proponents have launched a bill in Congress that is almost verbatim to the Marketplace Fairness Act of 2013 bill.  US Senators Mike Enzi, Dick Durbin, Lamar Alexander, and Heidi Heitkamp have reintroduced the bill with the purpose to “restore States’ sovereign rights to enforce State and local sales and use tax laws.”

The E-Fairness proponents are hoping to change a legal exception that now allows online retailers to avoid charging and collecting sales tax in states where they don’t have a physical presence (store, warehouse, office, etc.).  The proponents claim that this gives the online sellers an advantage over the brick and mortar stores who must charge sales tax as well as giving consumers the idea that purchases are “tax free”.  Many online retailers don’t charge tax when they deliver goods out-of-state, leaving it to the consumer to assess, report, and pay sales taxes on their annual tax return.  Very few actually do.  Advocates of this Act claim that states are missing out on millions of dollars of sales tax revenue yearly.

The Marketplace Fairness Act of 2013 was passed by the Senate with a vote of 69 to 27, but the House version was not agreed upon and expired after more than 18 months.  The Marketplace Fairness proponents include a New York City based global trade association for the shopping center industry.  The International Council of Shopping Centers (ICSC) is urging Congress to pass the bill.  ICSC has promoted e-fairness for over a decade.  They are optimistic that the 114th Congress can move forward with legislation.

 

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News and Events at www.allynintl.com.  More information about the bill can be found at www.marketplacefairness.org.

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