The Senate is expected to take up the legislation upon their return in early September, so NLC is requesting city officials contact California senators Dianne Feinstein
and Barbara Boxer
and urge them to co-sponsor and support the passage of the legislation while they are in their home state.
MITFA combines a major priority for NLC — leveling the playing field for online and brick-and-mortar retailers — with a temporary extension of the current moratorium on internet access taxes. The League supports
the bipartisan MITFA as it restores tax parity to the marketplace, while preserving existing tax authority for state and local government entities across the nation. Specifically, the legislation:
Is good for local retailers and creates a level playing field. Main Street retailers currently operate at a 5-10 percent disadvantage because they are required to collect sales taxes while remote sellers are not.
Is not a new tax. The Marketplace and Internet Tax Fairness Act simply allows states and local governments to enforce existing sales tax laws. The bill does not create new taxes or increase existing ones.
Is good for our residents and communities. By allowing local governments to collect an estimated $23 billion in uncollected sales taxes on remote sales that are already owed, cities can better provide services to residents at no cost to the federal government.
Allows Congress the flexibility to respond to the changing communications services industry by recognizing the moratorium on Internet access taxes should not be made permanent in the midst of enormous technological changes.
Officials are also encouraged to use the following NLC resources:
The League’s letter on MITFA and a sample letter for California cities is availalbe at www.cacities.org/federal