For Immediate
Release
Contact: Pamela Rucker/Michael Epstein (202) 783-7971
Measure
Calls for Equality Across Distribution Channels
Washington, DC, June 23, 2000 -- The National Retail Federation today
applauded the introduction of S. 2775, the Internet Tax Moratorium
and Equity Act, by Senators
Byron Dorgan (D-ND) and George Voinovich (R-OH). The measure extends the current
moratorium on new and discriminatory taxes, and, more important, calls on the
states to adopt a tax simplification compact, creating a mechanism for
collection of existing sales and use taxes on remote commerce.
"Senator Dorgan's measure is a critical step toward creating a level tax
playing field for all retailers, remote and 'brick and mortar,'" said Steve
Pfister, NRF's Senior Vice President for Government Relations. "This bill will ensure that Main Street
retailers do not face a competitive disadvantage with remote retailers."
Specifically, the legislation extends the existing moratorium on Internet
access and discriminatory taxes through December 31, 2005; authorizes states to
enter into an Interstate Sales and Use Tax Compact to streamline the tax system;
and authorizes states that adopt the Compact to require remote sellers with more
than $5 million in annual gross sales to collect and remit sales and use taxes
on remote sales.
"The issue is not about imposing new
taxes," Pfister said. "The issue is
ensuring a fair and equitable system for collection of state and local
taxes."
The National
Retail Federation (NRF) is the world's largest retail trade
association with membership that comprises all retail formats and channels of
distribution including department, specialty, discount, catalogue, Internet and
independent stores. NRF members
represent an industry that encompasses more than 1.4 million U.S. retail
establishments, employs more than 20 million people -- about 1 in 5 American
workers -- and registered 1999 sales of $3 trillion. NRF’s international members operate
stores in more than 50 nations. In
its role as the retail industry's umbrella group, NRF also represents 32
national and 50 state associations in the U.S. as well as 36 international
associations representing retailers abroad.