The Senate Commerce, Science and Transportation Committee held a hearing last Wednesday to examine the Marketplace Fairness Act (S 1832), which attempts to address concerns over the disparity in the sales tax treatment of online retail purchases and purchases from brick and mortar retailers. The first panel of witnesses included the bill’s primary sponsors, Senators Enzi (R-WY), Durbin (D-IL) and Alexander (R-TN). The second panel included a local bookstore owner from Austin, Texas, a representative from Amazon, and the Executive Director of the Streamlined Governing Board, all of whom support the act, and the head of NetChoice, who opposes the legislation. Several senators from both sides of the aisle spoke in favor of the legislation as a matter of fairness between retailers and to promote federalism by granting states the authority to choose whether to require remote sellers to collect.  The current system “doesn't work for consumers. It doesn't work for businesses. And it sure doesn't work for state and local governments," said Sen. Durbin in his prepared testimony. Sen. Enzi stated, “At a time when State budgets are under increasing pressure, Congress should give State and local governments the ability to enforce their own laws.” In addition to the Senate bill, two other pieces of similar legislation have been introduced by this Congress: the Marketplace Equity Act of 2011 (HR 3179) and the Main Street Fairness Act (HR 2701).

Link: Hearing Webcast and Testimony; S 1832; HR 3179; HR 2701