Marketplace Fairness May Quickly Come Up for a Vote

At TaxConnex, our practice revolves around the issue of sales tax nexus.  We've followed the sales tax nexus issues involving Amazon Laws and the Marketplace Fairness Act as it has developed in the Senate.

It looks like The Marketplace Fairness Act may come up for a vote quickly.  The Act would require online retailers to collect sales tax just like brick and mortar stores do.

The Act may be added on to the Defense Authorization Act of 2013.  Sen. Richard Durbin (D-Illinois), filed an amendment on Friday to include the Act in the spending bill.  Voting may be as early as next week.

As states struggle to meet revenue shortfalls, Marketplace Fairness has gained traction.

“Sen. Durbin is focused on working with his colleagues to try to get a vote on the bill before the end of this year, whether as a stand-alone bill or part of a larger piece of legislation,” said a Durbin aide. “They are keeping all options on the table at this point.”

The National Retail Federation supports the act. “As the nature of retailing evolves and Internet sales become a more prominent portion of total retail sales, it is critical that sales tax collection requirements not discriminate,” NRF Senior Vice President David French said in a letter to senators. “The current collection disparity has tilted the competitive landscape against local stores, creating a crisis for brick-and-mortar retailers around the country.”