Small Businesses from Across Ohio Form Leadership Council to Close Sales Tax Loophole, Create 11,000 Ohio Retail Jobs

COLUMBUS, Jan. 26, 2012 /PRNewswire/ -- The Alliance for Main Street Fairness (AMSF) in Ohio announced today the launch of the Ohio Main Street Leadership Council (OMSLC) to represent small businesses across the state in their effort to remedy an online sales tax disparity. Ohio's brick and mortar retailers of all sizes collect and remit sales tax. Currently, online retailers competing with Ohio businesses are not collecting sales tax at the point of sale. Two bills in Congress – the Main Street Fairness Act in the Senate and the Marketplace Equity Act in the House – aim to close this loophole and in doing so have the potential to create an estimated 11,000 Ohio retail jobs.

According to a recent study conducted by the University of Cincinnati, achieving parity on tax collections between retail stores and internet retailers would allow the state to recapture 11,000 direct retail jobs – a figure that rises to 15,000 when the indirect effects of spending and re-spending are taken into account. The UC study also states that the online tax loophole cost the state of Ohio more than $200 million in 2011 and a total of $1.1 billion for 2007 through 2012.

The study was conducted by UC's Economics Center for Education and Research on behalf of Focus on Ohio's Future, a non-profit research entity powered by the Ohio Council of Retail Merchants in partnership with the Alliance for Main Street Fairness.

Local retailers and business leaders have joined together to form the Ohio Main Street Leadership Council to educate the public and elected officials about how the online sales tax issue affects their businesses.      

The Ohio Main Street Leadership Council members include:

• Gordon Gough, Executive Vice President, Ohio Council of Retail Merchants
• Dale Edman, Vice President, E-Commerce Division, Wasserstrom Restaurant Supply
• Jack Seibert, President, Jack Seibert Goldsmith & Jeweler
• John Marshall, Owner, Grismer Tire
• Ian Budd, Owner, ICB Audio and Video
• Carol Hughes, Executive Director, Springboro Chamber of Commerce
• Neal Felstein, Owner, Woodville Surplus
• David Lewis, Owner, Lewis Electronics
• Jim Schwartz, President, Robin James Jewelers

Gordon Gough, Executive Vice President for the Ohio Council of Retail Merchants stated, "It's not fair that our brick and mortar retailers have to collect sales taxes, but online retailers do not.  This bill will not only help local Ohio retailers, but it will create jobs and increase investment in our local communities."

John Marshall, the owner of Grismer Tire which has stores throughout the Columbus and Dayton areas, said "E-Fairness is critical to my business. If this law passes, I could finally compete on a level playing field against online tire stores and expand my business."

Dale Edman, the Vice President of Columbus-based Wasserstrom Restaurant Supply's E-Commerce Division stated, "E-Commerce is a critical tool for business since many people first look online when purchasing a product. That's why it's important we make sure that all companies are playing by the same rules."

Cincinnati-area retailer Ian Budd, owner of ICB Audio and Video, urged Congress to act decisively, "Congress should close this abusive loophole now that is hurting Ohio businesses and siphons money from our state. The longer that they wait, the more small businesses like mine are suffering."

Jim Schwatz, President of Robin James Jewelers in Cincinnati said, "The formation of this leadership council represents the years of frustration for small business owners like me who have been operating at a competitive disadvantage. It's time that we unite as a collective voice so Congress can hear our concerns."

Carol Hughes, the Executive Director of the Springboro Chamber of Commerce, called for politicians to encourage Ohio job growth, "We should encourage investment and job growth in companies that grow their businesses in Ohio, not grant a competitive edge to online retailers that invest nothing in our state."

Toledo business owner Neal Felstein, owner of Woodville Surplus said, "People need to understand that this is not a new tax. These bills will just enforce the law that is currently on the books so that online stores collect sales tax just like we do."

"Customers will often come into my store, use my staff to find the product they want, scan it with their smart phones, and then buy it online because there is no sales tax. I'm all for the free market, but this loophole is driving away customers and hurting Ohio retailers," said David Lewis, owner of Cleveland-based Lewis Electronics.

The Ohio Main Street Leadership Council urges Ohio's elected officials to support marketplace fairness in Congress and will continue to educate citizens across the state.

To learn more about Main Street Leadership Council in Ohio, visit http://standwithmainstreet.com .

To view a copy of the University of Cincinnati study, visit http://www.focusonohiosfuture.org/.

Local business leaders available for interview by request. Contact Reid Vineis:
Reid Vineis
(614) 654-1123
[email protected]

SOURCE Ohio Council of Retail Merchants