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Bill To Help States Retrieve Billions In Uncollected Sales Tax Revenue and Aid Small Business

Recently, U.S. Rep. Delahunt announced that he will join with a bipartisan group of state lawmakers and small business owners at a Press Conference Thursday morning at 10:00AM in Room 2226 of the Rayburn House Office Building to urge passage of the Main Street Fairness Act (H.R. 5660).

The bill was introduced by Congressman Delahunt on July 1, 2010 and is designed to help states retrieve billions of lost sales tax revenues that are currently owed but go uncollected due to complex, outdated sales tax rules across the country.

"Without question, states and local municipalities are facing an unprecedented budget crisis," said Delahunt (D-MA). "Instead of raising new taxes, this bill is a common sense approach that allows them to collect taxes that are already owed while coming to the aid of struggling small businesses in our communities."

"This bill is about fairness and competition. It will help make sure that the store on the corner and the store on the Internet are playing by the same rules. This will create fair competition that benefits consumers," said South Dakota Governor Mike Rounds (R-SD). "Tax law should not favor out-of-state retailers over our own corner stores."

Former Speaker of the Iowa House of Representatives Chris Rants (R-IA) said, "Currently state governments are grappling with a $68B dollar budget deficit. States aren't asking the federal government for a handout-- states just need the federal government to give them the ability to collect the $23B dollars in sales taxes that are already owed."

Sales tax revenues comprise up to a third of most state budgets. This year, an estimated $18.6B will go uncollected; by 2012, the states will be losing at least $23B annually, based on conservative estimates. From 2009-2012, this amounts to a loss of approximately $55B. In some cases, these revenue losses can comprise up to one half of a state's budget shortfall.

The legislation provides congressional authority for the states to have the ability to simplify and streamline their sales tax systems. To date, 24 states have entered into this interstate compact which contains a uniform set of guidelines. The bill does not compel any state to join, but those that choose to adopt this system would then have the authority to require online retailers to collect and remit sales taxes the same way that businesses on local Main Streets do now.

The legislation is supported by the National Retail Federation, Retail Industry Leaders of America, International Council of Shopping Centers, Real Estate Investment Trusts Association, National Governors Association, U.S. Conference of Mayors, the National Conference of State Legislatures, National Association of Counties, and National League of Cities, and over 50 state-level retail associations and chambers of commerce.

WHO: Congressman Bill Delahunt (D-MA), South Dakota Governor Mike Rounds (R-SD), Former Speaker of the Iowa House of Representatives Chris Rants (R-IA), state leaders, small business owners.

WHAT: Capitol Hill Press Conference urging passage of Main Street Fairness Act.

WHERE: Room 2226 Rayburn House Office Building 10:00AM

WHEN: Thursday July 29, 2010 10:00AM

SOURCE: U.S. Rep. Delahunt