The Marketplace and Internet Tax Fairness Act and what it means - Spokane, North Idaho News & Weather KHQ.com

The Marketplace and Internet Tax Fairness Act and what it means to internet retailers and local small businesses

Posted: Updated:

KHQ.COM- Right now, there's another battle brewing on Capitol Hill and it's all about sales tax, more specifically, those who aren't paying it. The Marketplace and Internet Tax Fairness Act aims to bridge the gap between online retailers that don't collect sales tax and the local mom and pop shops that do. To put things in perspective, ask yourself this question: What would you do if you could purchase shoes tax-free online without shipping and handling versus going to your local store where you do pay taxes, which means you're paying more?

According to Kim Schmanke of the Washington Dept. of Revenue, this proposed law is about leveling the playing field and making local "brick and mortar" businesses more competitive with their online competition.

A Supreme Court ruling in 1992 prevents states from requiring out-of-state businesses without a physical presence in the state to collect sales tax when they sell to people living in that state. The new Marketplace Fairness Act would change that.

The current Marketplace Fairness Act assumes businesses would not be subject to the legislation if they had less than $1 million in remote sales in a state, so for example, an out-of-state catalog company would have to sell more than $1 million in gross sales to Washington consumers before it has to begin collecting and remitting the sales tax to the state.

Schmanke says, "even though the sales tax isn't required to be collected by these retailers today, Washington consumers are supposed to pay the equivalent amount to the Dept. of Revenue as a “use tax.” If you go to Idaho or another state and purchase an item tax-free there, you are supposed to pay the Washington Department of Revenue the equivalent sales tax, as if you purchased it at a local store. The same goes for an online transaction.

A report from the Dept. of Revenue shows, if some online retailers were to report the appropriate sales taxes for their sales (between 2013 and 2015) to Washington consumers, the state would receive $62 million and local governments would get $23.7 million. That number increases dramatically when looking at estimated figures between 2015-2017. Sales tax numbers grow to $217.2 million in local sales tax for Washington communities and $478.2 million for the state.

Washington belongs to the streamlined sales and use tax agreement (SSUTA). Retailers without a physical presence that do business in the state can use a service that performs all the sales and use tax collection functions. The cost of the service is covered by allowing the service provider to keep a portion of the tax they collect. So businesses that would begin to collect the taxes under the Marketplace Fairness Act would not have additional cost. In states like Idaho, that don't belong to the SSUTA, businesses would need to provide the online and catalog retailers with a free software to assist in the collection process.

The office of Washington state Governor Jay Inslee released this statement:

"The Marketplace & Internet Tax Fairness Act is among the most important actions Congress can take to support our state this year. The legislation would finally level the competitive playing field between online retailers and Washington state brick-and-mortar small businesses and allow our state and local governments to receive uncollected revenue due them under current tax law.

Earlier this year I contacted each member of Washington's congressional delegation to urge support of this legislation. The bipartisan National Governors Association and others have also called for passage of this legislation before the end of the year. I appreciate the support that some members have provided for this policy, including in the U.S. Senate's overwhelming passage of the Marketplace Fairness Act last year.

I am, however, concerned by recent statements from House leadership indicating that this bill that enjoys support from both parties may not even be considered in that body. It is now vital that every member of our delegation work hard to ensure passage of the Marketplace & Internet Tax Fairness Act for the president's signature this year."

To find out more on the Marketplace & Internet Tax Fairness Act and how it impacts you check out these websites:

http://marketplacefairness.org/

http://1.usa.gov/1xTWcl7

http://bit.ly/1uthpQu

http://bit.ly/1xmfRdE

  • Most Popular StoriesMost Popular StoriesMore>>

  • Deer Park homeowner tied up, robbed at gunpoint; deputies search for suspects

    Deer Park homeowner tied up, robbed at gunpoint; deputies search for suspects

    Thursday, February 22 2018 8:22 AM EST2018-02-22 13:22:31 GMT

    DEER PARK, Wash. - The Sevens County Sheriff's Office is requesting the public's help in identifying the suspects and a vehicle in a recent home invasion robbery. Deputies report that on February 12 around 6:45, they responded to a report of a robbery that took place on McKenzie Woolard Rd. in the Deer Park area. Two men and a women forced their way into the victim's home at gunpoint, tied the victim up, and stole numerous items including guns and the victim's debit card.

    >>

    DEER PARK, Wash. - The Sevens County Sheriff's Office is requesting the public's help in identifying the suspects and a vehicle in a recent home invasion robbery. Deputies report that on February 12 around 6:45, they responded to a report of a robbery that took place on McKenzie Woolard Rd. in the Deer Park area. Two men and a women forced their way into the victim's home at gunpoint, tied the victim up, and stole numerous items including guns and the victim's debit card.

    >>
  • Canadian medal winner takes off silver medal right after it's put on her neck

    Canadian medal winner takes off silver medal right after it's put on her neck

    Thursday, February 22 2018 9:36 AM EST2018-02-22 14:36:11 GMT

    KHQ.COM - The Canadian women's hockey team wept on the ice as they accepted their silver medals after losing to the Americans at the Pyeongchang Olympics.   One Canadian player, Jocelyne Larocque, took her medal off immediately and held it in her hands as the Americans stood nearby awaiting their gold Thursday.   Larocque says, "It's just so hard."

    >>

    KHQ.COM - The Canadian women's hockey team wept on the ice as they accepted their silver medals after losing to the Americans at the Pyeongchang Olympics.   One Canadian player, Jocelyne Larocque, took her medal off immediately and held it in her hands as the Americans stood nearby awaiting their gold Thursday.   Larocque says, "It's just so hard."

    >>
  • Coeur d'Alene deputy city administrator resigns after DUI arrest

    Coeur d'Alene deputy city administrator resigns after DUI arrest

    Wednesday, February 21 2018 11:15 PM EST2018-02-22 04:15:16 GMT

    COEUR D'ALENE, Idaho - Coeur d'Alene's deputy city administrator was booked into jail over the weekend on suspicion of driving under the influence and released on a $500 bond according to jail booking records. Sam Taylor of Post Falls was arrested just after midnight on Monday near the intersection of Highway 53 and Highway 41 in Rathdrum.

    >>

    COEUR D'ALENE, Idaho - Coeur d'Alene's deputy city administrator was booked into jail over the weekend on suspicion of driving under the influence and released on a $500 bond according to jail booking records. Sam Taylor of Post Falls was arrested just after midnight on Monday near the intersection of Highway 53 and Highway 41 in Rathdrum.

    >>
HD DOPPLER 6i
/
  • Top Stories from KHQHomeMore>>

  • NRA says left exploiting Florida school shooting

    NRA says left exploiting Florida school shooting

    Thursday, February 22 2018 12:41 PM EST2018-02-22 17:41:25 GMT

    WASHINGTON - Leaders of the National Rifle Association are accusing supporters of gun control of exploiting the mass school shooting in Florida to promote an anti-gun agenda. NRA leader Wayne LaPierre spoke at the Conservative Political Action Conference.

    >>

    WASHINGTON - Leaders of the National Rifle Association are accusing supporters of gun control of exploiting the mass school shooting in Florida to promote an anti-gun agenda. NRA leader Wayne LaPierre spoke at the Conservative Political Action Conference. He says Democrats like House Minority Leader Nancy Pelosi of California and Connecticut Sen. Chris Murphy are eager to blame the NRA and are calling "for even more government control."

    >>
  • Trump wants to ban bump stocks, ATF doesn't know if it can

    Trump wants to ban bump stocks, ATF doesn't know if it can

    Thursday, February 22 2018 11:47 AM EST2018-02-22 16:47:51 GMT

    WASHINGTON - President Donald Trump is telling his Justice Department to ban rapid-fire bump stock devices like those used in last year's massacre in Las Vegas. But some officials in the department are not sure they can. The president's surprise order this week comes as the federal Bureau of Alcohol, Tobacco, Firearms and Explosives is deep in a review of whether it has the power to regulate bump stocks without action from Congress. 

    >>

    WASHINGTON - President Donald Trump is telling his Justice Department to ban rapid-fire bump stock devices like those used in last year's massacre in Las Vegas. But some officials in the department are not sure they can. The president's surprise order this week comes as the federal Bureau of Alcohol, Tobacco, Firearms and Explosives is deep in a review of whether it has the power to regulate bump stocks without action from Congress. 

    >>
  • Close up shows President Trump's notes from listening session with gun violence survivors

    Close up shows President Trump's notes from listening session with gun violence survivors

    Thursday, February 22 2018 11:25 AM EST2018-02-22 16:25:27 GMT

    WASHINGTON (AP) - President Donald Trump is pledging action after students and parents appealed to President Donald Trump to set politics aside and protect America's school children from the scourge of gun violence. Trump says that could include the possibility of arming teachers. The president largely listened during the session Wednesday at the White House, but he also came equipped with a note card of five talking points written in black marker.

    >>

    WASHINGTON (AP) - President Donald Trump is pledging action after students and parents appealed to President Donald Trump to set politics aside and protect America's school children from the scourge of gun violence. Trump says that could include the possibility of arming teachers. The president largely listened during the session Wednesday at the White House, but he also came equipped with a note card of five talking points written in black marker.

    >>