Following Black Friday, attention turns to the tremendous amount of online sales made during Cyber Monday / Cyber Week. With online sales continuing to increase as well as the looming deadline of the Internet Tax Freedom Act on December 11th, this time of year causes the Marketplace Fairness Act to become a major talking point around the nation.
The Marketplace Fairness Act (MFA) would allow states to require Internet retailers to collect sales taxes like brick-and-mortar retailers for online sales, which would significantly change the current law which only allows states to require sales tax collection by retailers with a physical presence in the state. The MFA was passed by the Senate, but has stalled before the House. And it appears unlikely any action will be taken on the MFA in 2014 as House leader John Boehner has stated that he would block any efforts to move the bill forward.
It is no surprise that Cyber Week, which is estimated to generate over $9 billion in total sales just this year, provides an opportunity for supporters and critics of the MFA to bring attention to their position. If you have any questions regarding the Marketplace Fairness Act and its potential implication on your online sales, please contact Steve Dimengo, Rich Fry, or Casey Davis with any questions you have regarding compliance or general inquiries.