marketplace fairness act
SALES TAX EQUITY
The Issue—Marketplace Fairness Act
This spring, the U.S. Senate passed the Marketplace Fairness Act and the bill (H.R. 684) has gone to the House of Representatives. This summer, the House Judiciary Committee referred it to the Subcommittee on Regulatory Reform, Commercial and Antitrust Law; there is no timetable for consideration.
If the Marketplace Fairness Act becomes law it would create a national, legal framework under which brick-and-mortar, remote, and online retailers would be treated equally. Right now, brick-and-mortar retailers collect and remit sales taxes to the states in which they do business while online and remote retailers collect and remit sales taxes only in their own state and in states where they have a physical presence, such as a warehouse or distribution center.