GFOA Joins Letter to Senate in Support of Marketplace and Internet Tax Fairness Act

Tuesday, July 29, 2014

The GFOA joined other national associations representing local governments on a letter (see below) to the Senate urging support for the Marketplace and Internet Tax Fairness Act (MITFA, S. 2609). This legislation, introduced by a group of bipartisan senators on July 15, 2014, 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. MITFA would: 1) 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; 2) preserve the long-standing grandfather clause that currently permits ten states to assess taxes on Internet access and save those states and localities $500 million in annual revenues; and 3) prevent the moratorium on Internet access taxes from becoming permanent, as technological changes are in the offing that will expand the scope of broadband services protected from state and local taxation.

Beginning August 1, 2014, senators and representatives will return to their states and districts for the summer recess. During this time, GFOA members need to reach out to them directly or through local elected officials and urge them to support the MITFA, and to oppose any efforts to make the moratorium on Internet access taxes permanent.