Performance Marketing Association Strongly Supports Federal Sales Tax Solution Legislation

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The Marketplace Equity and the Marketplace Fairness Acts create a Constitutional framework that provides states with an equitable sales tax collection policy for all businesses

We need a constitutional framework that provides states with an equitable sales tax collection policy for all businesses.

The Performance Marketing Association, Inc. is offering its strong support for both the Marketplace Equity Act [Womack (R-AR) and Speier (D-CA)] and the Marketplace Fairness Act [Enzi (R-WY), Durbin (D-IL) and Alexander (R-TN)]. These pieces of legislation will create a constitutional framework for collecting sales tax online. The Marketplace Equity Act legislation will heard before the House Judiciary Committee on Wednesday, November 30, 2011.

Rebecca Madigan, executive director of the Performance Marketing Association, Inc. (PMA) stated, "There is a real sense of urgency for this legislation to become law. If Congress doesn’t act quickly, there are 60,000 small businesses that have had their incomes seriously constrained. Other states impatient for some sort of action, will pass affiliate nexus tax laws even though they are futile and ineffective, putting additional small businesses at risk. We need a Constitutional framework that provides states with an equitable sales tax collection policy for all businesses."

“I authored this bill because the inequity in sales tax collection hurts small businesses,” said Congressman Steve Womack (R-AR). “Current attempts at the state level, to bypass the US Constitution, have failed, and small businesses have been devastated as a result. Congress can readily resolve this issue with simple changes, which preserve states’ rights and their current sales tax policies, save small businesses and solve chronic collection issues states face with remote sellers.”

“With respect to the Affiliate Marketing industry, we have said all along that we support a Federal solution to the problem of remote sales tax collection. Our industry has been greatly harmed by state-level nexus bills, and beyond that – such legislation has proven ineffective in accomplishing any revenue gaining goals. I look forward to working with the Senators and Representatives who have stepped forward to take on this important issue, and support their efforts,” stated Brian Littleton, CEO of ShareASale.com, an Illinois-base affiliate marketing company, who felt the impact when that state passed an affiliate nexus tax law.

Language within ‘The Marketplace Fairness Act’ affirms, "It is the sense of Congress that States should have the ability to enforce their existing sales and use tax laws, to treat similar sales tax transactions equally, and the right to collect, or not to collect, taxes that are already owed under State law."

Madigan concluded, “Most importantly, the passage of this type of federal legislation will stop the proliferation of harmful state-by-state piecemeal attempts which, instead of increasing sales tax collections, have devastated over 60,000 internet-based small businesses in the states where these laws passed.”

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Shelly Sullivan
Shelly Sullivan PR & Media Consulting
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