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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.
E-Fairness Action Kit Offers State-Specific Tools
With states facing significant budget shortfalls, there is a tremendous opportunity to win victories for sales tax equity around the country. ABA has created an E-Fairness Action Kit (E-FACT) that provides booksellers with crucial, state-specific tools to help them in their e-fairness outreach efforts.

Join ABA's Fight for E-Fairness!
In 2008, a major victory was achieved in New York to require out-of-state retailers to comply with existing state tax laws, and, since then, e-fairness legislation has been passed in North Carolina, Rhode Island, and Colorado. But there's still much to be done.

Crucial to these successes in the sales tax equity fight has been the the passionate and engaged advocacy of booksellers and other independent retailers. E-mails, letters, phone calls, and visits with state legislators have made all the difference in bringing this important issue to the attention of elected officials.

This year, ABA created the E-Fairness Action Kit (E-FACT) to provide booksellers with a wide array of state-specific tools to help them in their e-fairness outreach efforts. In addition to state-specific template letters to state legislators and the governor calling for e-fairness, E-FACT features state-specific fact sheets that provide legislators with hard data about the economic value that independent booksellers bring to their state. In the coming weeks and months, E-FACT will also include op-ed pieces, FAQs, relevant articles, and practical suggestions for advocating on behalf of e-fairness.

The e-fairness victories already achieved are establishing an important precedent for other states to follow. Consider adapting some of the templates in the E-FACT materials to raise the issue in your state -- and help secure a level playing field for all retailers!

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 Main Street Fairness Initiative
    An effort by small business owners, retailers, state legislators, local community leaders, associations and concerned citizens to help level the playing field for Main Street businesses, protect the jobs of teachers and first responders and help reduce state economic shortfalls.
  • 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