While the opposition would have you believe that Congress will let the clock run out on efairness legislation, the latest activity in both the U.S. House of Representatives and Senate demonstrates otherwise. Champions in both chambers are determined to level the playing field for small businesses in our communities by closing the online sales tax loophole, and they mean to get it done this year.
After the May 2013 Senate passage of the Marketplace Fairness Act (MFA), which secured a solidly bipartisan 69-27 vote, local businesses became more hopeful than ever that Congress would finally pass legislation that would give them a fair chance to compete against their online counterparts. While House Judiciary Chairman Bob Goodlatte (R-VA) has expressed concerns over the Senate version, he and members of his committee on both sides of the aisle agree that our local businesses are suffering and that Congress must solve the problem. Fortunately, small community retailers found another efairness champion in Congressman Jason Chaffetz (R-UT), who has been working diligently to draft amendment language that would address the Chairman’s concerns. He joins Congressman Steve Womack (R-AR), the longtime sponsor of MFA in the House, and Congresswomen Jackie Speier (D-CA) and Suzan DelBene (D-WA), who have been actively working with their Republican colleagues on perfecting legislative language.
Activity picks up in the House
On July 15, the House of Representatives passed H.R. 3086, the Permanent Internet Tax Freedom Act (PITFA), which would seek to make a moratorium on Internet access taxes permanent. Right now it’s set to expire in November. During the June 18 markup of that bill in the House Judiciary Committee, Congressman Chaffetz and several fellow members of the committee spoke up in support of taking action on MFA. Then, during the July 15 floor debate on the measure, Representatives again called for the House to move forward with efairness legislation. Why is this significant? Because they are voicing the attitude of many legislators who would like to see PITFA and MFA combined into a single bill, agreeing that passage of both measures this year is critical.
Great minds think alike
Meanwhile, also on July 15, a group of bipartisan Senators led by Mike Enzi (R-WY), Dick Durbin (D-IL), Lamar Alexander (R-TN), Heidi Heitkamp (D-ND), Susan Collins (R-ME) and Mark Pryor (D-AR) introduced S. 2609, the Marketplace and Internet Tax Fairness Act (MITFA). The new legislation combines a re-tooled Marketplace Fairness Act (MFA) and a 10-year extension of the moratorium on Internet access taxes under the Internet Tax Freedom Act. Consideration of MITFA is being fast-tracked under Senate procedural rules and consideration on the Senate floor could begin as early as next week. This legislation will also need approval in the House of Representatives.
While passage of efairness legislation has been a top priority for local retailers and shopping centers for more than a decade, the activity in both chambers is sending a clear message that leveling the playing field for all retailers is a top priority for Congress this year too.
How you can help