NRF Member
Urges Congress to Establish a Level Playing Field for Sales Tax
Collection
Main
Street Merchant Says Loss of Revenue and Community Services Will Result Unless
Congress Acts
Washington, DC May 16, 2000 – An independent retailer from Texas today testified before a Congressional panel on the need for a level playing field for sales and use tax collection among all retail channels.
Les Ledger, a second-generation owner/operator of Ledger Furniture in Copperas Cove, Texas, spoke on behalf of the National Retail Federation before the House Ways and Means Subcommittee on Oversight. Ledger related his experiences as a retailer and how the existing inequity of sales and use tax collection would impact not only his business, but the public services the tax dollars support.
Ledger’s comments were drawn from his personal experience, as his store is located just 7 miles from a 17,000 square foot Army/Air Force PX at Fort Hood, Texas. He commented that a number of potential customers leave his store to shop at the Fort Hood, TX post exchange store because the government-run base store is not required to collect sales tax.
“I don’t have to wait and see the effect that tax-free purchasing has on my business, Ledger said. “I already know how it feels to compete with an entity that has a government imposed tax subsidy.”
The Texas merchant, who is past president of both the Texas Retailers Association and the International Home Furnishing Association, also warned that as the shift to Internet purchases increases, the resulting shift in consumer behavior would reach far beyond his business alone.
Ledger estimated that his business generated more than $200,000 in tax revenue to support services such as police and fire protection efforts and the school system -- that’s $149,000 he collected on behalf of the state, $31,000 in payroll and social security taxes, and $51,000 in local property taxes.
In conclusion, Ledger reiterated the retail industry’s call for fair and practical solution to the inequity that exists between Main Street retailers and their remote and Internet counterparts.
“As a retailer, my bottom line, and therefore, the survival of my store is affected by numerous factors beyond my control including the economy, the weather and..Federal and local government regulations,” he said. “While I’ve learned to live with many of these, I cannot and should not be expected to compete at an 8% tax pricing disadvantage compared to my Internet and remote commerce counterparts.”
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, catalog, 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.