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States across America will collectively lose $211 billion in revenues over the coming five years through uncollected sales taxes on Internet retail sales, according to the Marketplace Fairness Coalition.
The coalition, led by ICSC, is an ad hoc group of organizations and businesses in every state and of every size pressing for legislation and court action at the federal and state levels that will require online retailers to collect and remit sales taxes — as has always been required of brick-and-mortar retailers.
“The loss of such a massive amount of revenue, totaling more than $211 billion nationally over the next five years, will continue to threaten essential functions of state and local governments, including education and public safety,” the coalition said in a statement accompanying the report. “This data should send a loud and clear message: Now is the time for a federal solution to close the
remote sales-tax loophole.”
“The loss of such a massive amount of revenue, totaling more than $211 billion nationally over the next five years, will continue to threaten essential functions of state and local governments”
Next year alone the states will collectively lose $34 billion in revenues, says the coalition, which uses uncollected sales-tax data for 2015 from the National Conference of State Legislatures to calculate the projections. The coalition released an analysis that breaks down the amount each state will lose from 2018 through 2022.
Following a 1992 Supreme Court ruling, only those e-tailers with a physical presence in a state that charges sales taxes are required to collect and hand them over. Consumers buying from out-of-state retailers that do not collect are typically required to pay sales taxes on their own, but few do.
By Edmund Mander
Director, Editor-In-Chief/SCT
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