Advocates for a level playing field between traditional brick and mortar retailers and their online only competitors are celebrating the implementation of sales tax fairness in California. Beginning September 15, online only retailers, such as Amazon.com, will begin collecting state sales tax in California.
“Modern retailers operate in a competitive environment that requires them to compete on price 24 hours a day both in the store and online,” says RILA President Sandy Kennedy. “Closing the loophole that has given Amazon and other etailers an unfair competitive advantage over brick and mortar stores is essential to a free market economy that is void of government picking winners and losers.”
“Enactment of e-fairness in California is a big step in the right direction,” she continues, “but we still need Congress to finish the job. Only a comprehensive federal solution will end special treatment for online only sellers. Congress should follow the bi-partisan example set by our nation’s governors and close the sales tax loophole by passing the Marketplace Fairness Act in the Senate and the Marketplace Equity Act in the House—both enjoy rare broad bipartisan support.”
“A level playing field where every retailer competes on price in a free market is the right prescription for innovation and job growth in the retail sector. Congress can give these job providers a big boost by enacting e-fairness legislation by the end of the year.”
More States Lining Up
California joins Texas and Pennsylvania this year in requiring Amazon to begin collecting sales taxes, New Jersey and Virginia will require the same next year. Broadly supported bipartisan legislation under consideration in Congress would provide a comprehensive solution and provide states the tools they need to enforce their own sales tax laws. RILA is the trade association of more than 200 retailers, product manufacturers and service suppliers.