JA Says US in ‘Historic Moment’ in Fight for Sales Tax Fairness

Photo: house.gov

(IDEX Online News) – Jewelers of America (JA) has applauded the United States Senate, after it passed the Marketplace Fairness Act of 2013 on May 6 by a vote of 69 to 27. If it is passed by the House of Representatives, the legislation will close an Internet sales tax loophole that JA says has hurt traditional jewelry businesses.

"This is a historic moment in the fight for sales tax fairness," said JA president and CEO David J. Bonaparte. "For more than a decade, Jewelers of America has urged Congress to level the playing field between brick-and-mortar jewelers and online retailers. The passage of this legislation in the Senate demonstrates that Congress finally recognizes the need for fairness in the marketplace. We hope to see further action this year."

The Marketplace Fairness Act, S. 743, gives states the option to require the collection of sales and use taxes already owed under state law by out-of-state businesses, rather than rely on consumers to remit those taxes to the states. Currently, brick-and-mortar businesses collect sales and use taxes from customers who make purchases in their stores, but many online and remote retailers do not.

If the Act is passed by both chambers of Congress and becomes law, it would give states the option to require the collection of these taxes by out-of-state sellers if the state simplifies their sales and use tax systems.

The House of Representatives introduced an identical bill, H.R. 684, in March. That legislation also has bipartisan support, but has yet to come up for a vote.

JA, the national trade association for businesses serving the fine jewelry retail marketplace, is a member of the Marketplace Fairness Coalition, a group of businesses and associations that support e-fairness. Its Political Action Committee, JAPAC, is the only PAC that supports the fine retail jewelry industry in Washington, D.C.