Businesses, Organizations Unite in Call for House Chair to Take Up Sales Tax Fairness

On Tuesday, January 7, some 300 signatories representing more than three million businesses, associations, and organizations, including the American Booksellers Association, wrote to Rep. Bob Goodlatte (R-VA), chair of the U.S. House of Representatives Committee on the Judiciary, calling for action on sales tax fairness legislation.

Last May, the U.S. Senate overwhelmingly passed the Marketplace Fairness Act — sales tax fairness legislation that would allow states to require remote retailers to collect and remit sales tax — but the bill was never considered in the House. However, in September 2013 the House Judiciary Committee released its seven “basic principles” for sales tax fairness legislation. The principles were meant to provide a “starting point for discussion” on the issue in the House, according to Goodlatte. To develop these principles, the Judiciary Committee received input directly from taxpayers, industry and trade groups, and representatives of state and local governments.

In the letter, the groups urged Goodlatte “to make the 2013 holiday shopping season the last in which Main Street Businesses must compete at a government-created price disadvantage.” The groups noted that the December decision by the U.S. Supreme Court to not hear a challenge brought by Amazon and Overstock to New York State’s affiliate nexus law only emphasizes the need for Congress to act.

“Online shopping is popular with consumers and sellers alike,” the groups noted. “The rapid growth of e-commerce should benefit online sellers as well as Main Street businesses that also sell online. However, the special treatment of remote sellers distorts this market and puts many local brick-and-mortar businesses at a competitive disadvantage.” IBM Digital Analytics Benchmark reported that online shopping this Cyber Monday increased by 20.6 percent over last year.

The groups continued, “Legislation that levels the playing field while establishing important protections for businesses and consumers will ensure a healthy and competitive marketplace for decades to come. We believe it is crucial for Congress to address this problem this year to protect millions of jobs.”

COALITION LETTER TO CHAIRMAN GOODLATTE

January 7, 2014

The Honorable Robert W. Goodlatte
Chairman
The Committee on the Judiciary
U.S. House of Representatives
Washington, DC 20515

Dear Chairman Goodlatte:

On behalf of the undersigned businesses and organizations, we are writing to start off the new year to urge immediate action on legislation to create marketplace fairness and make the 2013 holiday shopping season the last where Main Street businesses must compete at a government-created price disadvantage. The recent decision by the United States Supreme Court to decline granting certiorari for two cases that challenged a New York State statute only highlights the need for Congressional action. We applaud your “Basic Principles on Remote Sales Tax” principles released on September 18 and now urge you to turn these principles into legislative language and make this issue a top priority for the Judiciary Committee in 2014.

In the 1992 Quill Corp. v. North Dakota case, Justice John Paul Stevens wrote that “the underlying issue [of whether remote sellers should be required to collect sales taxes] is not only one that Congress may be better qualified to resolve, but also one that Congress has the ultimate power to resolve.” More than twenty years later, the Court’s recent refusal to revisit the legal question, ironically announced on Cyber Monday, reaffirms their 1992 direction that this is an issue that Congress must address.

Online shopping is popular with consumers and sellers alike. The rapid growth of e-commerce should benefit online sellers as well as Main Street businesses that also sell online. However, the special treatment of remote sellers distorts this market and puts many local brick-and-mortar businesses at a competitive disadvantage. IBM Digital Analytics Benchmark reports that online shopping this Cyber Monday leapt by 20.6 percent over last year. This incredible growth underscores the importance of Congressional action to ensure government tax policy does not disrupt basic free market competition.

Legislation that levels the playing field while establishing important protections for businesses and consumers will ensure a healthy and competitive marketplace for decades to come. We believe it is crucial for Congress to address this problem this year to protect millions of jobs. And, as Dr. Art Laffer’s recent study found, when Congress fixes this problem it could help create 1.5 million new jobs and generate $563 billion in GDP growth in the next decade.  

In closing, we appreciate the deliberative manner in which you have addressed the issue of how to modernize our sales tax collection system for the digital economy, and we urge you to make legislating on this issue a top priority for your Committee by moving a bill in early 2014. We stand ready to work with you and your staff to help translate your seven guiding principles into legislation that will provide meaningful simplifications for remote sellers and create a level playing field for all retailers. Thank you for your leadership on this and many important issues to our economy and country.

Sincerely,
 

NATIONAL TRADE ASSOCIATIONS

• American Apparel and Footwear Association
• American Beverage Licensees
• American Booksellers Association
• American Farm Bureau Federation
• American Independent Business Alliance
• American Lighting Association
• American Specialty Toy Retailing Association
• American Supply Association
• American Veterinary Medical Association
• Association for Christian Retail
• Automotive Aftermarket Industry Association
• Certified Commercial Investment Member Institute
• Consumer Electronics Association
• Consumer Electronics Retailers Association
• Food Marketing Institute
• Heating, Air-Conditioning and Refrigeration Distributors International 
• Independent Running Retailer Association
• Institute of Real Estate Management
• International Council of Shopping Centers
• International Downtown Association
• International Economic Development Council
• Jewelers of America
• NAIOP, Commercial Real Estate Development Association
• National Association of Chain Drug Stores
• National Association of College Stores
• National Association of Electrical Distributors
• National Association of Music Merchants
• National Association of Real Estate Investment Trusts
• National Association of Realtors
• National Association of Wholesaler-Distributors
• National Bicycle Dealers Association
• National Grocers Association
• National Home Furnishings Association
• National Retail Federation
• National School Supply & Equipment Association
• National Sporting Goods Association
• North American Retail Dealers Association
• Outdoor Industry Association
• Pet Industry Joint Advisory Council
• Professional Beauty Association
• Real Estate Roundtable
• Realtors Land Institute
• Retail Industry Leaders Association
• Soccer Dealer Association
• Society of Industrial and Office Realtors
• U.S. Chamber of Commerce
• World Floor Covering Association

STATE / LOCAL TRADE ASSOCIATIONS

• Alabama College Bookstore Association
• Alabama Retail Association
• Alaska Veterinary Medical Association
• Alliance of Wisconsin Retailers
• Arizona Retailers Association
• Arkansas Grocers and Retail Merchants Association
• Association of Washington Business
• California Association of College Stores
• California Business Properties Association
• Southern California Independent Booksellers Association
• California Retailers Association
• California Veterinary Medical Association
• Campus Stores of New England
• Carolinas Food Industry Council
• College Stores Association of North Carolina
• College Stores Association of New York State
• Colorado Retail Council
• Colorado Veterinary Medical Association
• Connecticut Retail Merchants Association
• Delaware Veterinary Medical Association
• Economic Alliance of Snohomish County, WA
• The El Dorado Hills CA Chamber of Commerce
• The Elgin IL Chamber of Commerce
• Florida Association of College Stores
• Florida Chamber of Commerce
• Florida Retail Federation
• Georgia Association of College Stores
• Georgia Retail Association
• Georgia Veterinary Medical Association
• Great Lakes Independent Booksellers Association
• Idaho Retailers Association
• Idaho Veterinary Medical Association
• Illinois Association of College Stores
• Illinois Retail Merchants Association
• Illinois State Veterinary Medical Association
• Indiana Association of College Stores
• Indiana Retail Council
• Indiana Veterinary Medical Association
• Iowa Retail Federation
• Iowa Veterinary Medical Association
• Kansas Chamber of Commerce
• Kentucky Retail Federation
• Kentucky Veterinary Medical Association
• Local First Arizona
• Los Angeles Area Chamber of Commerce
• Louisiana Retailers Association
• Louisiana Veterinary Medical Association
• Maine Merchants Association
• Maine Veterinary Medical Association
• Maryland Retailers Association
• Massachusetts Veterinary Medical Association
• Middle Atlantic College Stores
• Midwest Independent Booksellers Association
• Michigan Association of College Stores
• Michigan Retailers Association
• Michigan Veterinary Medical Association
• Minnesota Business Partnership
• Minnesota Chamber of Commerce
• Minnesota Retail Association
• Minnesota Veterinary Medical Association
• Missouri Retailers Association
• Mountains and Plains Independent Booksellers Association
• Naperville Area Chamber of Commerce
• Nebraska Retail Federation
• Nebraska Veterinary Medical Association
• Nevada Veterinary Medical Association
• New Atlantic Independent Booksellers Association
• New England Independent Booksellers Association
• New Jersey Retail Merchants Association
• New Jersey Veterinary Medical Association
• New Mexico Retail Association
• North Carolina Retail Merchants Association
• North Carolina Veterinary Medical Association
• North Dakota Retail Association
• Northern California Independent Booksellers Association
• Northwest College Bookstore Association (WA, OR, AK, MT)
• Northwest Tire Dealers Association
• Oak Ridge Chamber of Commerce
• Ohio Association of College Stores
• Ohio Council of Retail Merchants
• Oklahoma Veterinary Medical Association
• Pacific Northwest Booksellers Association
• Pennsylvania Retailers’ Association
• Retail Association of Mississippi
• Retail Association of Nevada
• Retail Council of New York State
• Retail Merchants of Hawaii
• Retailers Association of Massachusetts
• Rhode Island Retail Federation
• Rocky Mountain Skyline Bookstore Association
• Seattle Metropolitan Chamber of Commerce
• Sioux Falls Area Chamber of Commerce
• South Carolina Association of College Stores
• South Carolina Association of Veterinarians
• South Carolina Retail Merchants Association
• South Dakota Retailers Association
• Southern Independent Booksellers Alliance
• Southwest Association of College Bookstores
• Tennessee Association of College Stores
• Tennessee Retail Association
• Tennessee Veterinary Medical Association
• Texas Retailers Association
• The State Chamber of Oklahoma
• Tri-City Regional Chamber of Commerce
• Tri-State Bookstore Association (ND, SD & MN)
• Tri-State Jewelers Association
• Twin Cities Metro Independent Business Alliance
• Utah Food Industry Association
• Utah Retail Merchants Association
• Utah Veterinary Medical Association
• Vermont Retail Association
• Virginia Retail Merchants Association
• Virginia Veterinary Medical Association
• Washington Retail Association
• Washington State Motorsports Dealers Association 
• Washington State Veterinary Medical Association
• West Virginia Retailers Association
• West Virginia Veterinary Medical Association
• Wisconsin Association of College Stores
• Wisconsin Veterinary Medical Association
• Wyoming Retail Association
• Wyoming Veterinary Medical Association

COMPANIES

• Abbell Associates, Chicago, IL
• A Cleaner Place, Oklahoma City, OK
• Acadia Realty Trust, White Plains, NY
• Amazon.com, Seattle, WA
• AutoZone, Memphis, TN
• Badcock Home Furniture, Mulberry, FL
• Balliet’s, LLC, Oklahoma City, OK
• Barnes and Noble, New York, NY
• Beall’s, Inc., Bradenton, FL
• Bed, Bath, & Beyond, Union, NJ
• Belpre Motor Sales, Belpre, OH
• Ben Bridge Jewelers, Seattle, WA
• Best Buy Co., Inc., Richfield, MN
• Blake Hunt Ventures, Inc., Danville, CA
• Book Nook, Monroe, MI
• The Brumby Chair Co., Marietta, GA
• BrandsMart U.S.A., Hollywood, FL
• Brooks Running Company, Seattle, WA
• Bucksbaum Retail Properties, Inc., Chicago, IL
• Build-A-Bear Workshop(R), Saint Louis, MO
• Camelot Retail Consulting Group, Wichita, KS
• Cardinal Camera, Lansdale, PA
• Cardi’s Furniture, Swansea, MA
• Cascade Designs, Seattle, WA
• CBL & Associates Properties, Inc., Chattanooga, TN
• Cencor Realty Services, Dallas, TX
• Chesterfield Blue Valley, LLC, St. Louis, MO
• The CortiGilchrist Partnership, LLC, San Diego, CA
• Dan’s Camera City, Allentown, PA
• David Hocker and Associates, Louisville, KY
• Davidsons, Roanoke, VA
• DDR Corp., Beachwood, OH
• Demos.org, New York, NY
• Dick’s Sporting Goods, Coraopolis, PA
• DLC Management Corp., Tarrytown, NY
• Donahue Schriber Realty Group, Costa Mesa, CA
• EDENS, Columbia, SC
• Evergreen Devco, Inc., Glendale, CA
• ExOfficio, Seattle, WA
• Fairfield Corp., Battle Creek, MI
• Far Bank Enterprises, Bainbridge Island, WA
• Federal Realty Investment Trust, Rockville, MD
• FedTax, Norwalk, CT
• Follett Corporation, River Grove, IL
• Foot Locker, Inc., New York, NY
• Forest City Enterprises, Inc., Cleveland, OH
• Gap Inc., San Francisco, CA
• Garrison Pacific Properties, San Rafael, CA
• General Growth Properties, Chicago, IL
• Ginn Solutions
• Givens Books and Little Dickens, Lynchburg, VA
• Glimcher Realty Trust, Columbus, OH
• The Greeby Companies, Inc., Chicago, IL
• Hart Realty Advisers, Inc., Simsbury, CT
• Hephner TV and Electronics, Wichita, KS
• The Hocker Group, Louisville, KY
• The Home Depot, Inc.
• The Howard Group, Albany, NY
• Houston Jewelry, Houston, TX
• Hutensky Capital Partners, Hartford, CT
• Hy-Vee Inc., Des Moines, IA
• Inland Real Estate Corporation, Oak Brook, Il
• JC Penney, Plano, TX
• Jo-Ann Stores, Inc., Hudson, OH
• Kemper Development Company, Bellevue, WA
• Kimco Realty Corporation, New Hyde Park, NY
• The King’s English Bookshop, Salt Lake City, UT
• The Kroger Co., Cincinnati, OH
• L. Michael Foley and Associates, LLC, La Jolla, CA
• Larmon Photo Inc., Abington, PA
• Larson Binkley, Inc., Kansas City, MO
• Lewis Electronics, Cleveland, OH
• Limited Brands, Columbus, OH
• Lowes Companies, Inc., Mooresville, NC
• The Macerich Company, Santa Monica, CA
• Macy’s, Inc, Cincinnati, OH
• Malcolm Riley and Associates, Los Angeles, CA
• Marketing Developments, Inc., MI
• Marmot Mountain LLC, Rohnert Park, CA
• Marshall Music Co., Lansing, MI
• Meijer, Walker, MI
• Mentor TV, Mentor, OH
• Michaels Electrical Supply Corp., Lynbrook, NY
• Monte Cristo Bookshop, New London, CT
• My Little Red Wagon, Hudson, OH
• Nordstrom, Inc., Seattle, WA
• The Neiman Marcus Group, Inc.
• Pealers Flowers, Camp Hill, PA
• Pennsylvania Real Estate Investment Trust, Philadelphia, PA
• Petco, Inc., San Diego, CA
• Planning Developments, Inc., MI
• Point of View Farm, Inc., Bengall, NY
• The Pratt Company, Mill Valley, CA
• Prince Books, Norfolk, VA
• Rakuten.com Shopping (formerly Buy.com)
• The Rappaport Companies, McLean, VA
• Regency Centers, Jacksonville, FL
• REI (Recreational Equipment, Inc.), Kent, WA
• Reininga Corporation, Healdsburg, CA
• Robert M. Sides Family Music Center, Williamsport, PA
• RMResources, LLC, Ann Arbor, MI
• Rosen’s of Maine, Bucksport, ME
• Safeway, Inc., Pleasanton, CA
• Sears Holdings Corporation, Hoffman Estates, IL
• The Seayco Group, Bentonville, AK
• The Sembler Company, St. Petersburg, FL
• Simms Fishing Products, Bozeman, MT
• Simon Property Group, Indianapolis, IN
• Stafford Properties, Inc., Atlanta, GA
• Staples, Inc., Framingham, MA
• Steiner + Associates LLC, Columbus, OH
• Stirling Properties, Covington, LA
• Tanger Factory Outlet Centers, Inc., Greensboro, NC
• Target Corporation, Minneapolis, MN
• Taubman Centers, Bloomfield Hills, MI
• The Timberland Company, Boston, MA
• Tractor Supply Company, Brentwood, TN
• Trucks Unique, Albuquerque, NM
• VPI Commercial Realty, LLC, Knoxville, TN
• Wal-Mart Stores, Bentonville, AR
• Wallace Properties, Inc., Bellevue, WA
• WDP Partners, LLC, Phoenix, AZ
• Watermark Books and Cafe, Wichita, KS
• Weingarten Realty Investors, Houston, TX
• The Weitzman Group, Dallas, TX
• West Marine, Inc., Watsonville, CA
• Western Development Corporation, Washington, DC
• Westfield, LLC, Los Angeles, CA
• Wiley Office Furniture, Springfield, IL
• Williams Ski and Patio, Highland Park, IL
• Wine Cellar Innovations, Cincinnati, OH
• Wolfe Properties, LLC, St. Louis, MO
• Woolrich, Inc., Woolrich, PA
• Zumiez, Inc., Lynwood, WA