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Sales Tax Initiative
ABA firmly believes it is the responsibility of state leaders to uniformly and fairly enforce sales tax laws by requiring all retailers—whether they operate online, in bricks-and-mortar stores, or a combination of both—to fulfill their obligation to collect sales tax.

This is neither a new tax nor special treatment for independent bookstores—it is an equitable and uniform enforcement of existing state tax laws.

Locally owned businesses have far greater positive economic impact on their communities and are largely responsible for our communities retaining their unique characteristics. To undercut them, by selectively deciding what laws to enforce and what laws to ignore, is simply wrong.

To keep up with the latest news in E-Fairness, check out Bookselling This Week.

 
What is E-Fairness?
E-Fairness does not call for new tax laws, but rather equitable enforcement of existing state tax laws. Tax laws in the 45 states that collect sales tax stipulate that when a retailer has any physical presence in the state, whether it be a retail store, warehouse, office, or sales agent, the company must collect and remit sales tax on purchases made by customers in those states. (Five states - Alaska, Delaware, Montana, New Hampshire, and Oregon - don't collect sales tax.)

However, some online retailers with affiliates in these states are not collecting sales tax, while their in-state competitors are. This creates an unfair advantage because many in-state customers will take advantage of tax-free, online shopping. As a result, in-state retailers lose business and the states lose much-needed tax revenue.
Join ABA's Fight for E-Fairness!

A major victory was recently achieved in New York to require out-of-state retailers to comply with existing state tax laws. But there's still much to be done.

Use these customizable templates to increase awareness of the online sales tax issue in your state—and help secure a level playing field for all retailers!

  • Letter to your legislators — urge your state legislators to follow New York's lead and introduce legislation that would clarify their state's existing tax laws.
  • Letter to your governor — urge your state governor to equitably enforce existing tax laws by requiring out-of-state retailers with nexus in your state to collect sales tax.
  • Letter to Texas comptroller — urge the state to equitably enforce existing tax laws by requiring out-of-state retailers with nexus in your state to collect sales tax.

In November 2008, 11 independent trade groups, including the American Booksellers Association, sent a letter to the governors in the 44 states that collect sales tax to equitably enforce existing tax laws. The groups stressed that, given the budget shortfalls that most states are facing, now more than ever, it's a state's obligation to ensure sales tax equity by requiring out-of-state retailers with nexus in the state to collect and remit sales tax.  Read the letter (and the states' responses) here.

December 2007, seven independent trade groups, including the American Booksellers Association, sent a letter to the governors in the 45 states with sales tax calling on them to equitably enforce existing tax laws by requiring out-of-state retailers and commercial resellers with nexus in states to collect sales tax. Read the letter (and the states' responses) here.

Internet Sales Tax Campaign

California. Use this letter as it is - or edit to your liking - to urge your Assemblymember to support A.B. 178, legislation that would level the playing field for California's brick and mortar businesses.

Connecticut. Use this letter as it is - or edit to your liking - to urge your Representative and Senator to support the Internet sale tax provision in the proposed Connecticut state budget, a provision that would level the playing field for Connecticut's brick and mortar businesses.

Florida. Use this letter as it is - or edit to your liking - to urge your Governor, Representative and Senator to introduce legislation based on the New York State Internet Tax provision.

Hawaii. Use this letter as it is - or edit to your liking - to urge your Representative to support HB1405, legislation that would level the playing field for Hawaii's brick and mortar businesses.

Maryland. Use this letter as it is - or edit to your liking - to urge your Senator and Delegate to support SB 1071, legislation that would level the playing field for Maryland's brick and mortar businesses.

Minnesota. Use this letter as it is - or edit to your liking - to urge your Senator and Representative to support SF0282 and HF401, respectively, legislation that would level the playing field for Minnesota's brick and mortar businesses.

North Carolina. Use this letter as it is - or edit to your liking - to urge your Senator and Representative, as well as the Conference Committee chairs, to support the Internet sales tax provision contained in the Appropriations Act of 2009.

Rhode Island. Use this letter as it is - or edit to your liking - to urge your legislators to support the Internet sales tax provision in the current budget.

Tennessee. Use this letter as it is - or edit to your liking - to urge your Senator and Representative to support SB 1741 and HB 1947, respectively, legislation that would level the playing field for Tennessee's brick and mortar businesses.

“Booksellers Bringing About Change”
In what was a significant victory for independent retailers, on Wednesday, April 9, the New York State Legislature passed a final budget that includes the Internet Sales Tax provision. This means that out-of-state retailers such as Amazon.com now will be required to comply with New York State sales tax laws and collect and remit sales tax on sales to state residents.

Crucial to the Sales Tax provision's success was the passionate support of booksellers and other independent retailers state-wide. Letters to state legislators (such as the templates provided on this page) made all the difference in bringing this important issue to their attention.

This victory establishes an important precedent and challenges other states to follow. Consider adapting some of the templates above to raise the issue in your state—and help secure a level playing field for all retailers! And for New York residents, if you haven't done so already, please consider sending a “Thank You” note to your state Assemblyperson or Senator:

Sample “Thank You” Letters to New York State Legislators
Use these letters as they are -- or edit to your liking - to thank your Assemblyperson and Senator for supporting the Internet Sales Tax provision in New York State's final budget.

Stay Informed
News on E-Fairness from Bookselling This Week

E-Fairness Everywhere:

E-Fairness Advocates and Resources
Organizations devoted to promoting equitable enforcement of sales tax laws.

  • The E-Fairness Coalition
    ABA is a partner in the Coalition, which advocates fairness for consumers and retailers large and small, bricks-and-mortar and online, nationwide.

  • Multistate Tax Commission
    An intergovernmental state tax agency that works to administer tax laws that apply to multistate and multinational enterprises.

  • Streamlined Sales Tax Governing Board
    Assists states as they administer a simpler and more uniform sales and use tax system.
Topics: Advocacy, Sales Tax Initiative, e-Commerce