Marketplace fairness legislation would level the playing field between online retailers and Main Street businesses by enabling state and local governments to collect already-existing sales and use taxes on online purchases.
Congress should act on this critical issue for counties by passing legislation like the Marketplace Fairness Act (MFA) or the Remote Transactions Parity Act (RTPA).
- MFA/RTPA is not a new tax. It would allow state and local governments to collect existing sales and use taxes on remote sales.
- MFA/RTPA would enable state and local governments to collect sales taxes that are already owed each year that could be dedicated to providing important local services such as infrastructure, public safety, education and economic development.
- Passing federal legislation would level the playing field for local retailers who are at a competitive disadvantage to online retailers who do not have to collect taxes.