JA supports introduction of Sales Tax Fairness Bill in House

If passed, the legislation would close an Internet sales tax loophole
JA supports introduction of Sales Tax Fairness Bill in House

Jewelers of America (JA) welcomed Congressman Jason Chaffetz’s introduction in the U.S. House of Representatives of the Remote Transactions Parity Act (RTPA) and supported the ongoing bipartisan efforts in the House and Senate to pass e-fairness legislation. The leadership and members of Jewelers of America will be in Washington, D.C., this week to discuss sales tax fairness and other key issues with lawmakers during the Jewelers of America Political Action Committee (JAPAC) annual Capitol Hill fly-in.

JA has led the fight for sales tax fairness in the jewelry industry. If passed, the legislation would close an Internet sales tax loophole that has hurt traditional jewelry businesses.

Like the Marketplace Fairness Act (MFA), introduced by the Senate in March, the RTPA would give states the option to require the collection of sales and use taxes already owed under state law by out-of-state businesses, rather than rely on consumers to remit those taxes to the states. Currently, brick-and-mortar businesses collect sales and use taxes from customers who purchase from their stores, but many online and remote retailers do not. If passed by both chambers of Congress and enacted into law, the measure would give states the option to require the collection of these taxes by out-of-state sellers if the state simplifies their sales and use tax systems.

“The introduction of sales tax fairness legislation in the House is a key moment in the fight to level the playing field for brick-and-mortar jewelers,” says JA President & CEO David J. Bonaparte.

While similar to the MFA, the RTPA addresses some concerns surrounding the MFA, which was introduced but stalled in the House during the last Congress. The RTPA would establish audit protections for remote sellers and requires states to provide sales tax collection software and integration to remote sellers free of charge. Additionally, the bill would allow for a transition period for smaller remote sellers.


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