By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Jackson, Mich. – The imaging-industry trade association PMA issued a statement Thursday expressing support for federal legislation mandating online companies to collect state sales taxes.
Earlier this month, the United States Senate passed the Marketplace Fairness Act, which requires online retailers with annual revenue of more than a million dollars to collect sales tax on transactions across state lines.
Foes of the legislation say complying with 50 different tax codes would put an undue burden on online retailers. The bill is now going before the United States House of Representatives.
“Although we oppose more taxes in general, PMA stands in support of legislation to level the playing field for local businesses. Right now, brick-and-mortar retailers must charge sales tax for the same merchandise that people can buy online without paying sales tax. This puts brick-and-mortar retailers at a huge and unfair disadvantage,” said PMA President Allen Showalter.
“While PMA also supports its members who do business online, the situation as it exists today is very one-sided. The Marketplace Fairness Act will allow all retailers to operate under the same conditions when it comes to charging sales tax. Provisions in this bill dictate that states have to provide tax software free of charge to online businesses, and update it regularly; thereby mitigating the hardship this legislation will create for online retailers.
“PMA endorses legislation that allows local, brick-and-mortar businesses to compete and thrive, which in turn supports their local communities, and the growth of the imaging industry as a whole,” Showalter added.
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