Mandatory sales tax proposal raises debate in the industry

Share this article:

While the Direct Marketing Association and the Electronic Retailing Association spoke out last week in opposition of the Sales Tax Fairness and Simplification Act (H.R. 3396.), the National Retail Federation supports it.  

The bill, which was introduced  on August 3 by Rep. William Delahunt (D-MA) would make interstate sales tax collection mandatory, regardless of whether the seller has a physical presence in the taxing state.

“This is one of a number of hearings that have been held on this issue over the past 20 years and it was an opportunity for the DMA to express its position that we do not support an Internet sales tax,” said Mark Micali, VP of government affairs at the DMA.

Both the DMA and ERA contended that the proposed tax could potentially hurt e-
commerce companies, especially small to midsize businesses.

However, J.C. Penney Corp. Inc. VP Wayne Zakrzewski, who testified to House Judiciary Subcommittee on behalf of the NRF said, “Passage of H.R. 3396 into law would be the appropriate next step to a modern, fair and responsive sales tax system.”

 

Share this article:

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Microsoft Set to Overtake Yahoo in Ad Revenues

Microsoft Set to Overtake Yahoo in Ad Revenues

Marissa Mayer can take credit for reversing ad declines. Still, her company will fall out of digital's Top 3 by year's end, according to eMarketer.

Oracle Announces Enhancements to its Marketing Cloud

Oracle Announces Enhancements to its Marketing Cloud

It continues to integrate functionalities from BlueKai, Responsys, and Eloqua.

In the Age of Storytelling, Is the CTA Still Viable?

In the Age of Storytelling, Is the CTA ...

Marketers have always put calls-to-action in messaging, but research suggests that sequenced ads may be more effective.