Senator Collins' Statement On Senate Passage Of Marketplace Fairness Act

            WASHINGTON, D.C.-U.S. Senator Susan Collins released this statement tonight following Senate passage of the Marketplace Fairness Act.

            "The Marketplace Fairness Act would not impose any new tax on online sales, nor would it impose an "Internet tax."  It would only help ensure that taxes already owed are paid.
 
            "Maine, like many states, taxes retail sales.  And if you make a purchase over the Internet or from a catalog from an out-of-state retailer, you are supposed to pay sales or "use" taxes on those items.  The problem is, right now, it is up to the customers to remit this use tax and most buyers rarely do so.  

            "This bill would provide for more efficient collection of these taxes that are already owed.  In fact, the National Conference of State Legislatures estimates that these uncollected taxes exceeded $23 billion in 2012 alone.  Governor LePage, who supports this bill, suggested to me in a letter that allowing Maine to more effectively collect taxes that are already owed on remote sales could help lower Maine's state income tax rates.
 
            "I do recognize that some businesses will have to install new software or systems to meet the requirements of this law. That is why I urged the sponsors to include the exemption in the bill so that retailerswith sales of less than a million dollars a year would not have to collect and remit this tax.  In addition, I continue to press for a later effective date to allow more time for covered businesses to come into compliance."

            "The bottom line is that brick-and-mortar stores are already required to collect taxes on goods that they sell.  This bill will simply help level the playing field for large businesses that sell their products in cyberspace rather than on Main Street."

###