Fortunately, federal legislation has been introduced by Rep. Jason Chaffetz, R-Utah, a key member of Congress, which could finally shut down this loophole and allow states to require online sellers to collect sales tax in the same manner as local stores.
In Colorado, the General Assembly and Gov. John Hickenlooper enacted legislation two years ago to put such a collection program in place once Congress acts. The “Remote Transactions Parity Act” isn’t the first bill in Congress aimed at leveling the playing field between online sellers and local merchants. But after more than a dozen years of efforts, it may be the bill with the best chance of passage. It has broad and growing bipartisan support.
Among other refinements, it exempts more small online sellers, protects them against audits and gives them free software that makes collecting sales tax as easy as calculating postage. Main Street retailers in Colorado don’t mind fair and honest competition, but Washington shouldn’t continue to allow out-of-state “e-tailers” to have an unfair advantage by not collecting the same tax all other retailers collect. We encourage Colorado’s congressional delegation to support Colorado merchants and Colorado jobs by co-sponsoring the House legislation and helping to get it signed into law before the end of the year. It’s time for a level playing field for our hometown stores.
Christopher D. Howes, president, Colorado Retail Council; Sam Mamet, executive director, Colorado Municipal League
Denver
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