Marketplace Fairness Act/Remote Transaction Parity Act
On June 22, 2018, the 5-4 U.S. Supreme Court opinion in the South Dakota v. Wayfair, Inc. case, allowing states to collect sales tax on online transactions.
Prior to this ruling, local and small businesses in Illinois were at a financial disadvantage. Now states have the authority to compel online and catalog retailers, no matter where they are located, to collect sales tax at the time of a transaction – exactly like local retailers are already required to do. Additionally, this will create an estimated $200 million in additional annual revenue for Illinois without creating any new taxes.
The next step on this issue is passing federal legislation requiring states to opt in to similar sales and use tax standards. The SBAC supports The Marketplace Fairness Act and its companion legislation in the U.S. House of Representatives, The Remote Transaction Parity Act, to create uniformity for businesses subjected to these changes and ensure all avenues of commerce – online and brick and mortar – are treated fairly on sales tax collection.