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(USGovernment-News.Com, July 20, 2013 ) Silver Spring, MD -- According to the most recent new release, the group of leaders lose money to their internet-only competitors, thanks to such competitors not being forced to pay a sales tax. That study is set to show a need to enforce such a tax for the passage of the Marketplace Fairness Act.
The act would be authorized by the state officials and would be required fo all online merchants, like Amazon and eBay, in order to collect the taxes from retailers outside their state, according to Nooga.com.
Currently, states are only requiring retailers which hold a physical presence within the boarders to pay tax. There is an exemption for merchants who create less than $1 million in out-of-state revenue, guarding smaller businesses.
Local leaders have state that if the act is unable to pass, the sales tax-dependent state like Tennessee stand to be the most hurt. Under current law, customers are meant to voluntarily pay sales tax for online purchases. As one might imagine, many do not opt to pay such taxes.
The brick-and-mortar businesses that do have to charge sales tax will likely lose their business to online retailers if the trend continues as it currently is predicted. State leaders have now reached a deal with Amazon leaders to issue sales tax collection, says Nooga.com.
A federal act has so far passed the Senate, where Senator Lamar Alexander authored the bill alongside Senator Bob Corker, who cosigned. The bill is set for the House next.
Leaders of the National Retail Federation have voiced considerable support for the act. As they put it "levels the playing field for all retailers."
"Retailers compete for customers on many different levels, distribution channels and fronts, including service and selection, but they cannot compete on sales tax," NRF Chairman of the Board Stephen I. Sadove said recently in a prepared statement. "Congress needs to address this sales tax disparity and allow retailers to compete freely and fairly. Retailers of all shapes, sizes and channels deserve a level playing field."
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