NACDS Endorses Bipartisan Legislation Vital for States, Main Street Businesses
August 01, 2012
Alexandria, Va. — The National Association of Chain Drug Stores (NACDS) today urged House and Senate leaders to support bipartisan legislation that would level the playing field between brick-and-mortar retail businesses—including community pharmacies—and Internet and other remote sellers. The legislation would also give states the ability to collect potentially millions of dollars in sales tax annually.
In addition to sending letters to House and Senate leaders, NACDS today provided a statement to the U.S. Senate Committee on Commerce, Science & Transportation, applauding the Committee’s hearing on “Leveling the Playing Field for Small Businesses.”
“Enactment of the Marketplace Equity Act would help preserve
Main Street businesses that are critical to the economic vitality of their communities and empower states to address their budget challenges without raising taxes, or adding to the federal deficit,” NACDS said in its statement for the hearing.
The Marketplace Equity Act, introduced by U.S. Senator Mike Enzi (R-WY), would close a loophole that puts retail brick-and-mortar businesses at a competitive disadvantage with online retailers. A 1992 U.S. Supreme Court ruling created the loophole, which prohibits states from requiring Internet and other remote sellers to collect sales and use taxes owed on purchases from out-of-state vendors.
“This loophole not only disadvantages brick-and-mortar retailers, it also ties the hands of cash-strapped states, preventing them from collecting the sales taxes owed to them,” NACDS President and CEO Steven C. Anderson, IOM, CAE, stated in letters sent to key Congressional leaders.
“We urge Congress to approve the Marketplace Equity Act to level the playing field between brick-and-mortar and Internet and other remote sales,” Anderson stated.