Close the Online Sales Tax Loophole

Take Action Now

1

Call Congress

Call your representative and ask him or her to support H.R. 2775, the Remote Transactions Parity Act. Here are talking points you can use.

2

Tweet Your Legislators

Use social media to contact your legislators about H.R. 2775 and include the hashtag #efairness. We've also compiled a list of sample tweets you can send.

3

Write a Letter to your Legislators

Send an email to your legislators asking them to cosponsor H.R. 2775. We've pre-written a letter that you can use and send in just a few minutes online. If you prefer to use city letterhead, you can find sample letter text here, as well as copies of letters other advocates have sent.

4

Write an Op-Ed or Letter to the Editor

Write an op-ed or letter to the editor of your local newspaper. Be sure to discuss the impact that closing the online sales tax loophole would have on your community. Here are some tips for writing op-eds and letters to the editor. You can also access more information about the state and local impacts of e-fairness.

Background Information

How does this affect you?

E-fairness legislation, such as the Marketplace Fairness Act in the Senate (S. 698) and the Remote Transactions Parity Act in the House (H.R. 2775), would allow local governments the flexibility to collect the taxes already owed to them on remote online purchases removes an unfair disadvantage for local businesses, while helping cities close budget gaps. Collecting owed sales taxes means more money for basic services, such as roads and police officers, without increasing the overall federal deficit.

Why now?

Each year, an estimated $23 billion in owed sales tax goes uncollected from online transactions, funds that cities cannot use on public safety, fixing sidewalks, building libraries, and many more services for their residents. In 1992, the Supreme Court's Quill decision urged Congress to address the issue of sales tax collection by remote sellers. Moreover, the recent decision by the Supreme Court not to consider a case involving a state law, in New York v. Amazon, magnified the need for Congress to level the playing field for all sellers as quickly as possible. Now is the time for Congress to close the online sales tax loophole. 

What can you do?

Call on your representative to cosponsor H.R. 2775  and your senators to cosponsor S. 698 because e-fairness:

  • Is good for local retailers and creates a level playing field. Main Street retailers currently operate at a 5-10 percent disadvantage because they are required to collect sales taxes while remote sellers are not.
  • Is not a new tax. E-fairness simply allows states and local governments to enforce existing sales tax laws. It does not create new taxes or increase existing ones.
  • Is good for our residents and communities. By allowing local governments to collect an estimated $23 billion in uncollected sales taxes on remote sales that are already owed, cities can better provide services to residents at no cost to the federal government.

Check to see if your senators are current cosponsors of the Marketplace Fairness Act or if your representatives are current cosponsors of the Remote Transactions Parity Act.

Take action today, and be sure to send copies of newspaper publications or information about your conversations with your members of Congress to advocacy@nlc.org.