May 08, 2017

Re-Introduction of Bipartisan Sales Tax Fairness Bills Hailed by Jewelers of America

The Jewelers of America (JA) recently issued a statement welcoming what it called “the growing momentum toward passage of sales tax fairness on Capitol Hill”.  

 

Specifically, the body referred to the reintroduction of two bills – the Remote Transactions Parity Act (RTPA), reintroduced in the U.S. House of Representatives; and the Marketplace Fairness Act (MFA), re-introduced in the Senate. 

 

“The timing of the reintroduction of the bills – which would level the playing field between brick-and-mortar and online retailers – comes less than a month after Amazon.com began collecting sales tax in the 45 states where taxes are due, another major milestone,” JA said in a press note. “It also coincides with several key court battles that could serve as a legal vehicle for the Supreme Court to reconsider its Quill decision of 1992, which established the current inequitable system for sales tax collection.” 

David J. Bonaparte, JA’s President and CEO, commented: “Along with Amazon’s decision and the ongoing court battles, the introduction of these bills sends a strong message to opponents of sales tax fairness that they are waging a losing battle.”   

Presently, says JA, brick-and-mortar businesses collect sales and use taxes from customers who make purchases in their stores, but many online and remote retailers do not. If the two Acts are passed by both chambers of Congress and enacted into law, the states would have the option to collect these taxes by out-of-state sellers.


The RTPA also has the potential to establish audit protections for remote sellers and requires states to provide sales tax collection software and integration to remote sellers free of charge.   


JA has been a longtime proponent of sales tax fairness, supporting efforts to enact legislation on the federal and state levels. 

“Competition between traditional retailers and the internet must be fair,” concludes Bonaparte. “JA will continue pushing for sales tax fairness until Congress gets this done.”