NRF Pushes Congress Toward Online Sales-Tax Legislation

WASHINGTON-The National Retail Federation has urged the Judiciary Committee of the U.S. House of Representatives to support legislation that would grant states the authority to require online retailers such as Amazon.com to collect sales taxes.

The legislation, titled the Marketplace Equity Act and introduced by Reps. Steve Womack (R-Ark.) and Jackie Speier (D-Calif.), would enable states to require online companies that do not have a physical presence in the state to collect and remit state sales taxes. In a decision in the case of Quill v. North Dakota in 1992, the U.S. Supreme Court said states could only require out-of-state sellers to collect sales taxes if the company has a physical presence in that state.

A statement on Rep. Speier's website said online retailers "enjoy a significant price advantage over bricks-and-mortar retailers who do have to collect state sales taxes."

In testimony provided to the Judiciary Committee, David French, NRF's senior vice president, said the legislation would, in effect, level the playing field between online and brick-and-mortar retailers.

"Allowing states to capture remote sales-tax revenue equitably regardless of a retailer's business model is meaning pro-small business reform of a broken collection system," French said.

Press reports have said the movement toward collecting taxes from online sales is gaining favor with state governors, including those who had initially opposed these taxes. A story from the Associated Press said governors have been making deals with Amazon to collect taxes from its sales.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.