Fair and Simple Plan to Improve Online Sales Tax Collection Well-Received by Retail Interests

Washington, D.C. (September 1, 2016) – Calling the bill “a simple and fair process for remote sales tax collection and remittance,” 92 businesses and organizations have signed a letter of support for the House Judiciary Committee’s draft Online Sales Simplification Act.

The 92 signatories to the letter addressed to Judiciary Chairman Bob Goodlatte (R-VA-6th) include catalog, online and other remote retail outlets who sell everything from sporting goods and gardening supplies to early childhood educational materials and clothing. In addition, the letter is signed by commercial printers as well as industry associations representing a broad contingent of retailers, including the American Catalog Mailers Association, the Direct Marketing Association, the Electronic Retailing Association, and NetChoice.

“Only Congress can bring certainty and rationality to this situation.  What’s needed is a simple solution that works for all stakeholders,” the letter states.  “Earlier destination-based legislative proposals (e.g., the Marketplace Fairness Act (MFA) and the Remote Transactions Parity Act (RTPA)) would create additional costs and complexity for interstate sellers.”

The letter notes of the House Judiciary measure, “This legislation, as currently drafted, is clear, fair and simple. The result is exactly what is required to level the playing field for all stakeholders: Sales taxes would be collected by sellers out of state and remitted to the state where products are delivered. This will go a long way toward protecting interstate commerce from unchecked taxation and regulation without representation, a bedrock principle upon which this country was founded.  You can count on our support for this measure.”

The letter praises the Judiciary Committee for crafting a measure designed to reduce regulatory hurdles to online, catalog and other remote sellers and to ensure the continued growth in the eCommerce sector. With many states adopting laws and regulations that would impose tax obligations on businesses outside the state’s borders, the Judiciary Committee draft bill is the simple and practical solution to remote sales tax collection for which businesses have been asking.

Read the Letter

List of Businesses