A Big Help For Small Businesses (NAPSA)—Yourability to shop where and when you want may be boosted by Congress passinglegislation known as the Main Street Fairness Act. Underthe bill, sales tax collection is applied evenly for Internet retailers and community merchants alike. The proposal modernizes the current system to keep pace with a changing marketplace that includes both online and brick-and-mortarretailers. Right now, all purchases made online are subject to the same sales tax as those made in neighborhood stores; however, when an online retailer fails to collect the sales tax, it falls to the buyer to report it. This poses a confusing and unnecessary burden on consumers. Advocates for change say a sale is a sale—whetherit takes place on the Internet or at a local store—and the same rules should apply, with certain exemptions for the smallest sellers. What We Have Now Some economists believe the current situation threatens eco- nomic development in communities across the country and impacts consumers, retailers and state governments. The buyer has an unmet tax liability that could result in an audit and penalty. Brick-and-mortar businesses that must collect the tax are ata competitive disadvantage to online-only retailers that do not. This tax loophole negatively impacts local businesses’ bottom line and, increasingly, has forced many of these businesses to close— depriving communities of the choice and convenience they’ve long enjoyed. States are losing critical funding—as much as $33.7 billion a year—which is needed now more than ever to close growing budget Legislators are trying to close a tax loophole that economists believe puts many neighborhood merchants in danger. gaps, pay down debt and finance vital services such as schools, law enforcement and emergency personnel. Meanwhile, businesses and residents face increased cor- porate, income and property taxes to make up the shortfall. What The Act Will Do The Main Street Fairness Act is designed to: Give states the option to set up a simple, fair system to collect taxes on remote sales; Allow states to collect revenue at every point of purchase; Protect the consumer against oneroustax liability and infringement of privacy. The software and Web applications necessary to collect sales tax exist now and are already in use by numerousretailers that choose to follow the law. “Brick-and-mortar stores are the backbone of this country, investing in their communities and ensuring the places wecall home are vibrant and welcoming,” said Michael Kercheval, president and CEO of the International Council of Shopping Centers. Learn More For more information, visit www.icsc.org/mainstreetfairness or call (202) 626-1400.
