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Marketplace Fairness Act: Difference between revisions

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→‎Current law: Changed to "prior" law to note that this was the law at the time of the proposed bill
→‎Previous bills: It's like this article was stuck in a 113th Congress time capsule
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In the 2011 Bill, opponents were concerned that the bill would have imposed an unrealistic burden on sellers and consumers,<ref>{{Cite web|url=https://www.mytotalretail.com/article/proposed-marketplace-fairness-act-threatens-direct-marketers/|title=Proposed Marketplace Fairness Act Threatens Direct Marketers|first=George S.|last=Isaacson|website=Total Retail|date=February 2012 }}</ref> while proponents said that it would have helped retailers with a physical presence in sales-tax states to compete with online retailers.<ref>{{cite news |last=Kennedy |first=Sandy |title=Closing Online Loophole Will Level Playing Field |url=https://www.usnews.com/debate-club/should-states-be-able-to-collect-sales-tax-on-goods-sold-online/closing-online-tax-loophole-will-level-the-playing-field |access-date=September 4, 2012 |newspaper=U.S. News & World Report |date=August 8, 2012}}</ref> Proponents have argued that residents of states that impose a sales tax choose to purchase out-of-state products to avoid the sales tax and that businesses selling to customers in participating sales-tax states should collect and pay the new interstate sales tax, to mitigate the effect of consumers who illegally evade the use tax. Opponents of the bill argued that states already have the right to impose, or not impose, a sales tax, and if states wished to compete for interstate sales, they may reduce or eliminate their sales tax.
 
Large retailers who currently have a physical presence in most or all states are already required to collect sales tax on interstate sales to consumers in those states, so the bill would not have had a significant effect on them. (Technically, those sales are considered intrastate sales for taxing purposes because of the seller's physical presence within the taxing state.<ref>{{Cite web|url=https://www.govtrack.us/congress/bills/113/s2609/text|title=Text of S. 2609 (113th): Marketplace and Internet Tax Fairness Act (Placed on Calendar in the Senate version)|website=GovTrack.us}}</ref>) TheirPrior to the ''South Dakota v. Wayfair, Inc.'' decision, their smaller competitors who have stores in a few states or in one state are currentlywere required to collect sales tax only where they have a physical location. If they have online stores, the bill would have allowed participating states to require them to calculate, collect, and pay the new interstate sales tax. [[Walmart]], [[Target Corporation|Target]], [[Amazon.com|Amazon]], and other retailers have been reported as supporters of a new sales tax. The [[National Association of Music Merchants]] supported the 2011 Bill because it would have required online music sellers such as [[Apple Inc.|Apple]]'s [[iTunes]] to pay the tax to some participating states.<ref>{{cite web |title=NAMM Signatory with Coalition Concerning Marketplace Equity Act in US House |url=http://www.namm.org/public-affairs/articles/namm-signatory-coalition-concerning-marketplace |access-date=September 4, 2012}}</ref> [[eBay]], [[Overstock.com]], and other online retailers were opponents of the 2011 Bill. Retailers and government representatives in states that have no sales tax were generally opposed to the bill.
 
===Supporters===