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Wednesday,
April 18, 2001
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9/29/00
IMRA Member Wal-Mart Testifies in Support of
Streamlined Sales Tax Project
Arlington, Va.,
September 29, 2000- Today, David Bullington, Vice President of
Taxes, Wal-Mart Stores, Inc., testified on behalf of IMRA and its
membership at the Streamlined Sales Tax Project in Chicago. At a
special hearing on the Project’s proposal for sales tax
simplification and standardization, Bullington said that Wal-Mart
and the other IMRA member companies “applaud the efforts underway
by the Streamlined Sales Tax Project.”
Bullington, who in
April testified at a Senate Commerce Committee hearing on Internet
taxation, restated the position of the e-Fairness Coalition (IMRA
and Wal-Mart are among the founding members) in support of
fairness for businesses and consumers. The coalition advocates “a
level playing field that ensures that consumers are treated fairly
no matter where they choose to shop,” he said.
Bullington
noted that existing state sales tax rules, largely instituted
before e-Commerce became a reality, have created “two fields of
retail competition” where, on one playing field, brick-and-mortar
retail stores are required to collect sales tax on behalf of
states and localities and, on the other, Internet and other remote
sellers need not.
“We are opposed to new and
discriminatory taxes on the Internet itself, Bullington said. “We
are simply talking about the fairest, most efficient way to
collect existing taxes. We believe that simplification and
standardization across state lines are essential to achieving a
level playing field.”
Bullington expressed the industry’s
hope that “all the stakeholders” were now ready cooperate to enact
the “state-by-state legislation necessary for a more simplified
system through which eventual across-the-board collection can be
required.”
“Our review of your proposal indicates that
tremendous strides have been made toward a more workable system,
even toward many of those simplification goals set forth by the
Advisory Commission on Electronic Commerce,” Bullington said.
Among the provisions of the Project’s proposal, he cited the
following as significant: electronic registration for out-of-state
retailers; a uniform return; electronic filing of returns; a
standard format for remittances; restrictions on the frequency of
rate changes; and “seller held harmless” protection for reliance
upon an exemption certificate.
In closing, Bullington
re-emphasized the importance of simplification and standardization
in resolving the issue of e-commerce taxation. He also cautioned
against viewing technology solutions as “ends within themselves.”
“We must all stay the course on achieving meaningful
uniformity and simplification in the bills the various state
houses will soon be asked to pass,” he said. “Yes, technology
solutions should be encouraged as part of encouraging significant
and rapid movement toward simpler systems with greater consistency
across state lines. But I urge you, by all means, do not give up
even if Congress should insist on yet a few more painful steps
toward simplification.”
IMRA President Robert J. Verdisco,
commenting on Bullington’s testimony and the Streamlined Project’s
proposal, said, “I am pleased the Streamlined Project sought out
the testimony of IMRA and thank David Bullington of Wal-Mart for
his hard work on the Project and for delivering our testimony on
behalf of all IMRA members.
“While I applaud the progress
the Streamlined Project has made and urge them to continue with
their efforts, I would like to reiterate what we said in our
testimony. Congressional supporters of a level playing field for
sales tax collection have introduced legislation that outlines
what they consider to be the necessary simplification before
states can be allowed to compel out of state retailers to collect
their sales taxes. While the Project’s proposal addresses a number
of those elements, it does not meet all of the goals set forth in
the legislation. This disparity will have to be reconciled before
Congress will ever agree to allow states to impose a collection
requirement on retailers located outside their borders.”
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The
International Mass Retail Association--the world’s leading
alliance of retailers and their product and service suppliers--is
committed to bringing price-competitive value to the world’s
consumers. IMRA improves its members’ businesses by providing
industry research and education, government advocacy, and a unique
forum for its members to establish relationships, solve problems,
and work together for the benefit of the consumer and the mass
retail industry. IMRA represents many of the best-known and most
successful retailers in the world, who operate thousands of stores
worldwide. IMRA equally values among its members hundreds of the
world’s top-tier product and service suppliers, working with their
retailer partners to further the growth of the mass retail
industry.
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