Marketplace Fairness Act passes U.S. Senate

The United States Senate voted 69-27 Monday night to pass Marketplace Fairness Act legislation that closes the sales tax loophole allows large online-only retailers to evade collecting and remitting sales taxes like their brick-and-mortar counterparts.

The bill now heads to the House, where similar legislation already enjoys the support of over 60 bipartisan cosponsors.

U.S. Sen. Tim Kaine, D-Va., joined the bipartisan majority voting in favor of the legislation.

“Merchants across our Commonwealth play by the rules and collect sales tax but big internet retailers have been shielded from that same responsibility. I am pleased we took a bipartisan step today to end that unfair advantage by passing the Marketplace Fairness Act, and I urge the House to adopt this measure to level the playing field for Virginia’s small retail businesses,” Kaine said.

Members of the Alliance for Main Street Fairness (AMSF), a coalition of over 7,000 small business owners, played a critical role in the passage of this legislation. AMSF represents mom-and-pop retailers across the country including many who sell online or are working to expand their business online. Over the past two weeks, many of these business owners have communicated with their home state Senators to refute misleading and false assertions made by eBay that the legislation would hurt small business.

With the support of an honor roll of conservative leaders, America’s governors and brick-and-mortar small businesses from across the country, online-only retailers will soon have to compete on a level playing field. This states’ rights legislation could also be the mechanism for which states lower tax rates – a pro-growth approach that benefits both small businesses and consumers.
“I truly appreciate Sens. Warner and Kaine supporting Main Street on this issue,” said Donnie Caffery, owner of Good Foods Grocery in Richmond. “Governor McDonnell has also shown he knows what a positive impact passage of the Marketplace Fairness Act would have in countless communities across the Commonwealth. Now it is time for our representatives in the House to follow their lead and close the sales tax loophole once and for all.”