The Response – Marketplace Fairness Act (S. 1832)

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Marketplace Fairness Act - The Response

As the Marketplace Fairness Act (S. 1832) gets more traction and gains responses to this bipartisan version of the Main Street Fairness Act (S. 1452 / H.R. 2701), here are some of the groups who have voiced their opinions:

National Conference of State Legislatures (NCSL) – “As states expect major cuts in federal funds as part of the deficit reduction process, enacting this legislation is a step federal lawmakers can take to lessen the impact. If this legislation passes, estimates show that in FY 2012 alone, states stand to gain $23.3 billion in revenue from sales taxes that already exist, but currently cannot be collected. This is fiscal relief for the states that does not cost the federal treasury a dime.”

National Taxpayers Union (NTU) – “…the new “Marketplace Fairness Act” (MFA) still carries the threat of harming the economy and suppressing beneficial tax competition among states.”

Retail Industry Leaders Association (RILA) – “A true free market is devoid of government preferences and special treatment. The Marketplace Fairness Act will get government out of the way, restore the free market and close the loophole that has given an unfair advantage to online retailers like Amazon.com for over a decade.”

National Retail Federation (NRF) – “…it’s not just about retail – fair sales tax laws are needed so budget cuts don’t force layoffs for essential workers like police, firefighters and schoolteachers.”

NetChoice has been quoted on Reuters as being “…worried about the small sellers.”

Amazon – “Amazon strongly supports enactment of the Enzi-Durbin-Alexander bill and will work with Congress, retailers, and the states to get this bi-partisan legislation passed.”

According to Business Journal accounts, “…big-box retailers supporting the bill include Target Corp. and Wal-Mart Stores Inc.” and that “…the online retail community remains split, with giant eBay Inc. announcing opposition to Alexander’s bill because it ‘fails to protect small business retailers’ from unfair competition with large retailers and leads to higher tax burden.”

Reuters reports that eBay opposes “…the bill, fram[ing] it as large corporations versus small businesses and entrepreneurs.”

The supporting Senators are open to raising the small business exemption from $500,000 in annual sales to a higher number. “Republican Senator Mike Enzi told reporters, ‘If $1 million seems to be what the consensus of the Senate thinks, we could make it $1 million.’”

Related content:

  1. National Governor’s Association Statement on Marketplace Fairness
  2. Senate Version of Marketplace Equity Act Is Off and Running
  3. States Speak Up in Support of Main Street Fairness Act
  4. Stand With Main Street and eBay

2 thoughts on “The Response – Marketplace Fairness Act (S. 1832)”

  1. One way or another the states need to reclaim this lost revenue. Seems like the SST is still a long way off. Marketplace Equity Act might be a “No New Taxes” solution that can pass the divided Congress.
    In reading the proposed bill I missed any provision for process and record keeping for sales to customers who buy for resale. The definition of what is “for resale” varies as widely as any other part of state sales tax rules.
    Will “for resale” sales follow the SST model?

  2. Pingback: Stand With Main Street and eBay | Avalara Blog