Federal legislation empowers states, modernizes law to reflect 21st Century Marketplace
WASHINGTON, Nov. 9, 2011 /PRNewswire-USNewswire/ -- The International Council of Shopping Centers (ICSC) supports Senators Lamar Alexander (R-TN), Mike Enzi (R-WY) and Dick Durbin (D-IL) in introducing the Marketplace Fairness Act which, if enacted, will close an online sales tax loophole that has hurt local retailers, fueled state budget shortfalls, and placed consumers at unnecessary risk for fines and penalties. The bill, S. 1832, will empower states to enforce existing laws by requiring online retailers and other remote sellers to collect sales taxes.
"ICSC applauds these Senators for crafting a bipartisan solution that will enable states to close the online sales tax loophole," said David B. Henry, chairman of ICSC and president & CEO of Kimco Realty Corporation. "It's an issue that hits home for consumers, businesses and local governments in red states, blue states, and everywhere in between. Every day, brick-and-mortar retailers of all sizes do their duty to collect and remit sales taxes, putting them at a significant competitive disadvantage to online and catalogue retailers who continue to reap the benefits from an antiquated and unfair system. It's time Congress took action to level the playing field, close this loophole, and help states and communities across the country," Henry added.
"Most consumers are unaware that they are already responsible for paying sales tax on online purchases, even when the online retailer does not collect the tax," said Michael Kercheval, president and CEO of ICSC. "The Marketplace Fairness Act will remove the burden from consumers of remitting sales tax on online purchases and correct an artificial disruption in the retail marketplace. The bill will allow all retailers to thrive on equal footing, and reflects the realities of the 21st century marketplace."
Joining Senators Alexander, Enzi and Durbin as co-sponsors of S. 1832 are Senators Roy Blunt (R-MO), John Boozman (R-AR), Bob Corker (R-TN), Tim Johnson (D-SD), Mark Pryor (D-AR), Jack Reed (D-RI) and Sheldon Whitehouse (D-SD).
ICSC has promoted sales tax fairness for over a decade, advocating that a "sale is a sale" regardless of whether the purchase takes place on Main Street, at a shopping center, via mail-order or over the Internet. For more information, visit www.icsc.org/salestaxfairness.
Founded in 1957, ICSC is the premier global trade association of the shopping center industry. Its more than 55,000 members in over 90 countries include shopping center owners, developers, managers, marketing specialists, investors, retailers and brokers, as well as academics and public officials. As the global industry trade association, ICSC links with more than 25 national and regional shopping center councils throughout the world. For more information, visit www.icsc.org.
SOURCE International Council of Shopping Centers