Haslam Urges Congressional Action This Year to Authorize Internet Sales Tax Collection

Gov. Bill Haslam and Washington Gov. Chris Gregoire have sent a letter to two U.S. Senate Finance Committee leaders urging action before the end of the year on legislation allowing states to collect sales taxes on Internet sales. The bill is known as the “Marketplace Fairness Act.”
The letter to Senate Finance Committee Chairman Max Baucus and Sen. Orrin Hatch, ranking Republican on the panel, says the lack of state tax collection on Internet sales has created “an artificial price disparity” between online retailers and traditional brick-and-mortar retailers, who must collect sales taxes.
“We understand you would prefer to take up the Marketplace Fairness Act next year in the context of wide-ranging, comprehensive tax reform. Frankly, our Main street businesses and states cannot afford to wait. This is our best chance to pass this important legislation and we urge your support for enacting S. 1832 this year,” the letter says.
The letter was distributed to media by the National Governors Association. The full letter is available HERE.


Gov. Bill Haslam and Washington Gov. Chris Gregoire have sent a letter to two U.S. Senate Finance Committee leaders urging action before the end of the year on legislation allowing states to collect sales taxes on Internet sales. The bill is known as the “Marketplace Fairness Act.”
The letter to Senate Finance Committee Chairman Max Baucus, a Democrat, and Sen. Orrin Hatch, ranking Republican on the panel, says the lack of state tax collection on Internet sales has created “an artificial price disparity” between online retailers and traditional brick-and-mortar retailers, who must collect sales taxes.
“Failure to act now will only exacerbate state losses and harm local businesses that are losing sales to online sellers,” the letter says. “According to a leading Internet analytics firm, 2012 holiday online sales are up 14 percent from last year. (Wall Street Journal, Real-Time Economics, Dec. 5, 2012.) Cyber Monday was the heaviest online spending day on record at $1.47 billion. The firm attributes the growth to broad strength in the e-commerce sector and the fact that more than half of those who use the Internet have already made online purchases this holiday season.”
…”We understand you would prefer to take up the Marketplace Fairness Act next year in the context of wide-ranging, comprehensive tax reform. Frankly, our Main street businesses and states cannot afford to wait. This is our best chance to pass this important legislation and we urge your support for enacting S. 1832 this year,” the letter says.
The letter was distributed to media by the National Governors Association.

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