Date: Monday, November 26, 2012
The Marketplace Fairness Act enables local business to expand and increase jobs
Chicago – November 26, 2012 In an effort to deliver economic fairness and opportunity to local businesses, the Small Business Advocacy Council (SBAC) is supporting the Marketplace Fairness Act.
Not only does this bipartisan legislation provide our state with an opportunity to address our budget shortfall without raising taxes, it levels the playing field for local retailers who feel they’re competing with online retailers with one arm tied behind their back, said Elliot Richardson, SBAC President.
The Marketplace Fairness Act was introduced in the United States Senate to grant states the authority they need to enforce their own sales and use tax laws including requiring remote sellers to collect and remit sales and use taxes. The legislation exempts small online sellers with less than $500,000 in out-of- state sales a year in order to give small start-ups a chance to grow.
Current law requires a physical presence or a nexus for states to require retailers to collect sales and use tax, which puts brick and mortar businesses at a competitive disadvantage compared to their online retail competitors.
The Marketplace Fairness Act provides two options for states to collect sales and use taxes by becoming a member of the Streamlined Sales and Use Tax Agreement or by complying with alternative minimum tax simplification requirements.
Small businesses on Main Street invest in our communities, they create jobs for local workers; they are our neighbors and they deserve a fair shake, said U.S. Senator Dick Durbin. â€œBut local businesses will never be able to compete if we continue this unfair advantage for huge online retailers.
According to the Center on Budget and Policy Priorities, states will have a combined budget shortfall of $103 billion in 2012. At the same time, States will also lose about $23 billion in uncollected sales and use taxes in 2012. In Illinois alone, taxpayers will lose out on over $1 billion in uncollected revenue.
Because of this loophole, local economies are losing out on the resources necessary to adequately fund our state’s schools, public safety, and infrastructure, said xxx, local retailer. The time is long overdue for all retailers to play by the same set of rules.