The National Retail Federation has released a short video featuring small retailers from across the country expressing the online disparity between Main Street retailers and internet retailers, along with the “urgent” need for Congress to address the Marketplace Fairness Act.
The video was released in conjunction with of the House Judiciary Committee’s basic principles pertaining to the internet sales tax. The principles are intended to guide discussion on this issue and spark creative solutions.
“We are losing the face of retail on Main Street,” said Erin Calvo-Bacci, owner of Bacci Chocolate Design and The Chocolate Truffler, in the video.
Owner and CEO of Pieratt’s Appliances, Television, Bedding and Furniture, Bruce Pieratt said in the video that his store is at a “six percent [tax] disadvantage to internet sellers who don’t have a brick and mortar presence.” Pieratt was referring to the fact that currently if an online retailer sells a product in a state where it does not have a physical nexus, they are not required to collect tax, but the buyer is expected to claim the tax on their annual tax return – a rule that almost no one follows.
Andrew Brewer, owner of Onion River Sports, said in the video that smaller business should not expect a major overhaul of their business to comply with the act if it’s passed. “I do not think it will be difficult. My little business, I bet you I could, I can go inside my system and change codes and toggle switches to start collecting the different sales taxes and it won’t take me half a day.”