The World Floor Covering Association (WFCA) is pushing for the passing of the Marketplace Fairness Act, a bill that would help local flooring businesses stay competitive against internet retailers by forcing e-tailers to collect a sales tax at the point of purchase, just as local businesses are required to do.
The problem local brick and mortar businesses have been experiencing is that customers are coming into their stores to peruse the products, only to purchase online in order to avoid a sales tax.
The Marketplace Fairness Act, which is endorsed by the WFCA, would close a 1992 loophole that allowed retailers to collect a state sales tax even if they weren’t physically located in that state. According to the WFCA, since internet retailers are not required to collect sales tax at the time of purchase, they enjoy a price advantage that can be as much as 10 percent.
The bill was introduced in November 2011 by Senators Lamar Alexander (R. Tenn.), Dick Durbin (D. Ill.) and Mike Enzi (R. Wyo.), with the help of seven other senators, and offers states two options to meet specific taxing agreements.
In a press release dated November 16, 2011, Chris Davis, former CEO, WFCA, stated, “Our objective all along has been to level the playing field between ‘bricks and mortar’ retailers and e-tailers. This bill appears to be one many on both sides of the aisle can support and pass into law, and that is the end game.”
So far, 24 states have altered their tax laws to meet the requirements of the bill.