The local and state efforts toward online sales tax collection is gaining momentum, as is clear from the recent deluge of local articles on the issue. Here’s a selection:
– from the Holland Sentinel (MI), “The case for fairness: A sale is a sale is a sale”:
According to a report released last month by Lansing-based Public Sector Consultants, the sales tax loophole has a significant negative impact on job makers and the state’s economy. The study found that closing the loophole would directly lead to the creation of as many as 1,600 new jobs, would increase investment in Michigan’s economy in the form of sales at brick-and-mortar retail outlets by as much as $126 million per year and would save the state as much as $141.5 million in otherwise lost sales tax revenue from electronic remote sales in 2012 alone.
– from NorthJersey.com, “Internet retailers might lose tax edge”:
In my mind, it comes down to a question of fairness, as stated by John Holub, president of the New Jersey Retail Merchants Association:
“Online-only retailers are costing the State of New Jersey hundreds of millions of dollars in tax revenue and are underselling New Jersey’s small-business owners. It’s time for New Jersey to modernize its tax structure and close this unfair tax loophole.”
– from the Bismarck Tribune, “It’s simply an issue of fairness”:
A customer goes into a local business to check out a product. This person finds a computer, makes an online purchase of that same item and avoids paying the sales tax.
Is that fair to a North Dakota brick-and-mortar business that employs our state’s citizens, invests in the community and helps drive the local economy? I don’t think so.
That’s why we need The Main Street Fairness Act. This legislation will close the loophole that gives online retailers a competitive advantage over the local businesses.
– from Tampa Bay Online, “Solution sought for sales tax ‘loophole'”:
Some shoppers look over a product at local stores and then buy it online in hopes of avoiding the sales tax, Alpine said. Stores end up being treated like a showroom.
“It needs to be an equal playing field,” he said.
“Without a doubt this is an enforcement issue that ultimately can only be fully resolved if the federal government weighs in,” state Rep. John Legg, R-Port Richey, said in an email.