Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Urges President and Congress to create sales tax parity for Main Street merchants and online retailers.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the President and Congress to create sales tax parity for Main Street merchants.
Whereas, In Quill v. North Dakota, the United States Supreme Court exempted remote retailers from collecting sales tax in states where the retailer lacked a physical presence and noted that only Congress could empower states to require sales tax collection by remote retailers; and
Whereas, The failure of Congress to grant states this authority has created an unfair advantage for online and catalog retailers over Main Street brick and mortar stores that collect sales taxes from customers who make in-store purchases as online and catalog retailers are not required to collect the same sales taxes; and
Whereas, Accordingly, remote retailers are able to price their merchandise five to 10 percent lower than Main Street brick and mortar stores, which has prompted many consumers to shop online instead of in stores; and
Whereas, As internet commerce grows, states will continue to lose billions in state and local tax revenue through tax free internet shopping unless Congress acts; and
Whereas, At a time when the economy is facing challenges, collecting sales tax on internet and catalog purchases would allow New Jersey to fund various property tax relief programs and improve health care services and transportation infrastructure; and
Whereas, Federal legislation that allows state and local governments the flexibility to collect sales taxes on internet and catalog purchases will provide equitable tax treatment for brick and mortar businesses, create fair competition, and boost state revenues without imposing new taxes; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully urges the President of the United States and the United States Congress to enact legislation that creates tax parity between Main Street merchants and online retailers by requiring online retailers to collect sales tax.
2. Duly authenticated copies of this resolution shall be transmitted to the President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and each member of the United States Congress elected from this State.
STATEMENT
This resolution urges the President and Congress to create sales tax parity for Main Street merchants by requiring online retailers to collect sales tax.
In Quill v. North Dakota, the United States Supreme Court exempted remote retailers from collecting sales tax in states where the retailer lacked a physical presence and noted that only Congress could authorize states to collect sales tax from these retailers. The failure of Congress to grant states this authority has created an unfair price advantage for remote retailers over brick and mortar stores, which has prompted many consumers to shop online instead of in stores. As internet commerce grows, many state and local governments will continue to lose billions in tax revenue each year through tax free internet purchases.
At a time when the economy faces challenges, collecting sales tax on internet and catalog purchases would allow New Jersey to fund property tax relief programs and improve services and infrastructure. Federal legislation that allows states the flexibility to collect sales tax on internet and catalog purchases will provide equitable tax treatment for Main Street merchants, create fair competition, and boost state revenues without imposing new taxes.