Unless Congress acts on legislation to promote fair competition between Main Street retailers and internet-only sellers, states will lose more than $211 billion in tax revenue over the next five years, according to new analysis released by the Marketplace Fairness Coalition.
Currently, a legal loophole allows some online retailers to avoid collecting the sales tax due during a transaction. While consumers are still liable for paying what’s owed, few do, which gives online stores a strong advantage over their Main Street competitors.
One of farmers and ranchers’ biggest concerns about the lack of fair competition between brick-and-mortar stores and internet-only sellers is that local governments and schools often try to make up for the lost sales tax revenue by increasing property taxes, a burden that falls heavily on land-based business owners.
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