Retail Industry Stands behind Rep. Delahunt

Supports Efforts to Level the Field between Internet and Brick-and-Mortar Retailers

WASHINGTON--(BUSINESS WIRE)--Retail and shopping center executives came together today in Washington, D.C. in a show of support for U.S. Rep. William Delahunt (MA-10) and his efforts to level the playing field between brick-and-mortar and Internet retailers. Earlier this month, the congressman introduced the Main Street Fairness Act (H.R. 5660) which, if enacted, would require internet retailers to collect sales taxes for all purchases made online. Currently, Internet retailers only have to collect sales taxes in states they have a physical nexus (store, office, warehouse or distribution center).

“Many Internet retailers currently enjoy a competitive pricing advantage over brick-and-mortar retailers because of a loophole in the tax code that doesn’t require them to collect state sales taxes. The Main Street Fairness Act would ensure that all retailers, regardless of where they are located, collect and remit state sales taxes,” Congressman Delahunt explained.

Most states already have what is known as a “use tax,” which requires consumers to pay a tax when they make a remote or online purchase and sales tax is not collected by the retailer. However, few consumers are aware of this tax liability. This uncollected tax can represent a sizable amount in lost revenue for states. A 2009 University of Tennessee study estimates that in 2012 that number could be as high as $23 billion.

“The argument made by Internet retailers over a decade ago that they could not collect and remit local sales taxes, because of a patchwork quilt of state sales tax laws, is no longer valid. Today, low-cost technology exists to enable retailers to calculate the amount of sales tax owed on Internet purchases. If brick-and-mortar retailers collect and remit taxes on Internet purchases then Internet retailers can and should,” said Michael P. Kercheval, president and CEO, International Council of Shopping Centers.

The legislation is supported by the National Retail Federation, Retail Industry Leaders of America, International Council of Shopping Centers, Real Estate Investment Trusts Association, National Governors Association, U.S. Conference of Mayors, the National Conference of State Legislatures, National Association of Counties, and National League of Cities, as well as over 50 state-level retail associations and chambers of commerce.

ICSC has promoted sales tax fairness for over a decade, advocating a level playing field regardless of whether the purchase takes place on Main Street, at shopping centers, via mail-order or over the Internet.

Founded in 1957, ICSC is the premier global trade association of the shopping center industry. Its more than 55,000 members in over 90 countries include shopping center owners, developers, managers, marketing specialists, investors, retailers and brokers, as well as academics and public officials. As the global industry trade association, ICSC links with more than 25 national and regional shopping center councils throughout the world. For more information, visit www.icsc.org.

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