Congratulations to Senator-elect Heitkamp!

November 26, 2012

Heidi Heitkamp

Congratulations to Heidi Heitkamp, who was just elected senator of North Dakota! Some of our readers may recognize her name: She was the North Dakota Tax Commissioner when the state brought suit against Quill Corp. in an attempt to require the catalog company to collect use tax on purchases made by North Dakota residents. The case famously went to the Supreme Court, which ruled that it would be too difficult for businesses to collect sales tax for states where they had no physical presence. But, equally important, the court also said that “the underlying issue here is one that Congress may be better qualified to resolve, and one that it has the ultimate power to resolve.”

Four bills currently before Congress attempt to do just that and close the online sales tax loophole. We look forward to Senator-elect Heitkamp’s support on the issue!


Local sales tax on Election Day

November 2, 2012

Vote!With Election Day fast approaching, we’re seeing more and more articles on local sales tax measures that will appear on the ballot.

Any changes in sales tax have to be approved by voters, and in many places this year’s ballot includes a new sales tax to fund local initiatives. No one like paying taxes, of course, but these measures often receive a lot of local support—those who pay the tax are the same ones who benefit from the services it provides.

So what kinds of sales tax measures are appearing on ballots?

In Creek County, Oklahoma, a one-third-cent sales tax would buy much-needed equipment for the volunteer fire department.

In Rifle, Colorado, a three-quarter-cent sales tax would help pay for a new water treatment plant to replace the existing one, “which is old and in danger of failure.”

In Augusta, Kansas, a one-percent sales tax would pay for a new water line that would triple the amount of water carried to the city, without raising water rates or property taxes.

In Deridder, Louisiana, a quarter-cent sales tax would pay for renovations to the 98-year-old courthouse, which has a broken wheelchair lift and no elevator.

In Saratoga, California, a one-eighth-cent sales tax would fund law enforcement programs, emergency room services, and health insurance for low-income children.

In Jackson, Missouri, a sixth-cent sales tax would fund renovations to the public library.

In El Paso County, Colorado, a quarter of one percent sales tax would provide deputies for the understaffed sheriff’s department.

In Little Rock, Arkansas, a half-cent sales tax would pay for a highway improvement program that will create 40,000 jobs.

In Marion, Ohio, a 0.25% sales tax would allow for the rehiring of laid-off police and fire department personnel and help maintain city streets.

In Baldwin County, Alabama, a one-cent sales tax would go to local schools, which currently operate with less per-pupil spending than the state average.

All of these sales tax measures will appear on the ballot in November, to be either approved or rejected by local communities.

But if online retailers collected sales tax—which is already due on online purchases—these measures might be unnecessary.

States are losing out on $23 billion in uncollected sales tax every year—sales tax that shoppers owe but that goes unpaid because online retailers don’t have to collect it. That $23 billion would be supporting these kinds of projects and services without the need
for any increase in local sales tax.

Keeping fire and police departments staffed, maintaining roads, and supporting local schools without any tax increases—just more reasons to support online sales tax.