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State Lawmakers Support MFA

  • Nov 14, 2013 | Gail Cole

 State lawmakers plan to speak out for a federal solution to remote sales tax.

In December 2012, state lawmakers from every part of the country met in the nation’s capital for the National Conference of State Legislatures (NCSL). While there, they lobbied for the Marketplace Fairness Act of 2013 (MFA), and their support of the legislation likely contributed to the May passage of MFA by the United States Senate. Members of NCSL will return to DC for their annual meeting early next month; this year they will again lobby for MFA, focusing their energies on the House of Representatives.

The Marketplace Fairness Act has been left largely unattended in the House since it was approved by the Senate. In September, Chairman of the House Judiciary Committee Bob Goodlatte released 7 Principles on Internet Sales Tax to guide the discussion. It is said he is currently “examining whether to rework not only the small-seller exemption but also the single-audit requirement.” There has been little recent news. According to South Dakota State Representative Justin Cronin, the bill has “just been sitting in the House Judiciary….

On December 4, 2013, members of NCSL will once again “Take their message to Capitol Hill and urge their congressional delegations to pass” the Marketplace Fairness Act of 2013. This time, conservative lawmakers are planning to let their voices be heard. Rep. Cronin says that he wants to be sure to share “the perspective of a conservative legislator from a very conservative state.” What does he want? “[G]et people talking” about the Marketplace Fairness Act once again.

Arguments for the federal legislation will center on the following point: “The inability to collect the billions of dollars in sales taxes already owed to states threatens one of their largest revenue streams. If the trend continues…, states will be forced to either find alternative means of revenue or cut important state programs” (NCSL).

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.