On July 15, 2014, a group of bipartisan senators introduced the Marketplace and Internet Tax Fairness Act (MITFA, S. 2609), legislation that would combine the Marketplace Fairness Act that passed the Senate last year with a 10-year extension of the moratorium on Internet access taxes that is set to expire November 1, 2014.
Your senators and representatives are currently in their home states and districts for the summer recess. GFOA members are encouraged to reach out to them directly or through local elected officials and urge them to support the MITFA when Congress returns to Washington, D.C. in September, and to oppose any efforts to make the moratorium on Internet access taxes permanent.
Tell your Congressional delegation that the MITFA is essential because it would:
- Level the playing field for bricks and mortar retailers, which face a 5-10% price disadvantage over remote sellers, by giving states the option of requiring remote sellers to collect and remit their sales taxes.
- Preserve the long-standing grandfather clause that currently permits ten states (Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington, and Wisconsin) to assess taxes on Internet access and save those states and localities $500 million in annual revenues.
- Prevent the moratorium on Internet access taxes from becoming permanent, as technological changes are on the horizon that will expand the scope of broadband services protected from state and local taxation.