The National Retail Federation sent a letter to Senate Majority Leader Harry Reid, D-Nev., Friday urging him and other Senators to vote in favor of an online sales tax bill, which is expected to be brought before the full Senate for a vote as early as Monday.
The Marketplace Fairness Act, S.743, was re-introduced on April 16 by Sen. Mike Enzi, R-Wyo., before Reid filed a motion supporting the measure on Thursday.
The bill was approved as a nonbinding measure to the Senate’s fiscal 2014 budget with 75 members voting in favor of it.
If approved next week, the bill would allow states to collect taxes from online retailers, which supporters of the measure say would help level the playing field for brick-and-mortar businesses. Currently, states can only charge a sales tax to retailers that have a physical presence in the state.
Groups have estimated that states could see nearly $23 billion in new revenue annually from an online sales tax.
“The Marketplace Fairness Act is a commonsense piece of legislation necessary to modernize our federal and state understanding of sales tax laws so that they can keep current with real world change in the marketplace,” wrote David French, NRF’s senior vice president of government relations. “Leveling the playing field for large and small retailers alike will create a business climate where retailers have a better opportunity to grow and create jobs in a truly competitive marketplace.”
