Sales Tax Initiative

This week, ABA hosted sales tax fairness workshops at Booksellers Forums in Salt Lake City, Utah, in conjunction with MPIBA, and Manhattan Beach, California, in conjunction with SCIBA.

As the sales tax fairness fight continues to gain momentum nationwide, on Monday, March 28, booksellers in Connecticut and Texas testified before legislative committees about pending legislation.

There have been two recent victories in sales tax parity – affiliate nexus legislation approved by the Arkansas legislature, and, in South Dakota, new legislation enacted into law.

George Skelton, political columnist for the Los Angeles Times, believes that Amazon.com and other online sellers that have affiliates in the state of California should be paying sales tax on purchases by in-state residents.

In a March 18 editorial, the New York Times said, “Collecting state taxes is not an unreasonable burden for online retailers,” and “states should not give in to Amazon’s pressure tactics.”

On the heels of the passage of an affiliate nexus law in Illinois, sales tax fairness bills in Vermont, Arkansas, and Minnesota have had early successes.

In what is a significant victory for sales tax fairness, Illinois Gov. Pat Quinn today signed sales tax fairness legislation into law. HB3659 will require remote retailers with broad networks of online affiliates in Illinois to collect and remit sales tax for purchases made by Illinois residents.

On Monday, March 7, the California Assembly Committee on Revenue and Taxation heard testimony regarding one of several sales tax equity bills expected to be introduced this legislative session. Speakers at the hearing included NCIBA Executive Director Hut Landon.

The national fight for sales tax equity garnered prominent media attention this week, even as Amazon.com threatened to terminate its affiliate marketers in California should the state pass e-fairness legislation.

This week, ABA CEO Oren Teicher wrote to Texas Gov. Rick Perry to express the association’s full support for the state comptroller’s attempts to collect back sales tax from Amazon.com and to require the online retailer to collect and remit future sales tax to the state.

ABA’s 2011 Spring Forum Tour arrives in Indianapolis, Indiana, on Thursday, March 3. The program, presented in conjunction with GLiBA, will be held from 11:00 a.m. to 2:00 p.m. at Big Hat Books & Arts.

On Wednesday, February 16, ABA member booksellers testified at hearings on sales tax fairness bills that would clarify existing state laws in Arizona and in Vermont.

Rather than comply with an assessment from the state of Texas to pay $269 million in uncollected sales tax, Amazon.com has announced that it will close its distribution facility in the Dallas suburb of Irving on April 12 and will cancel plans to build additional facilities in the state.

The North Carolina Department of Revenue has reached a settlement in the legal fight regarding the state’s request for sales data from Amazon.com in its efforts to recoup an estimated $50 million in lost tax revenue for online purchases.

On Tuesday, February 1, four ABA member booksellers braved threats of an impending blizzard and joined other retailers in a meeting with members of Illinois Gov. Pat Quinn’s office to urge the governor to sign HB3659, sales tax fairness legislation.