News Brief

DMA Launches Coalition To Lobby Congress About Ecommerce Taxes

The Direct Marketing Association has formed a new group, the True Simplification of Taxation Coalition, which will lobby Congress regarding taxes of online purchases. Other members of the new coalition are the American Catalog Mailers Association, Electronic Retailers Association, and NetChoice. 

Congress currently is considering three different bills -- the Main Street Fairness Act, Marketplace Fairness Act, and Marketplace Equity Act -- which would authorize states to require online retailers to collect sales tax. Absent federal authorization, states arguably violate the constitution by attempting to require out-of-state companies to tax consumers.

The DMA says that the new coalition is urging Congress not to enact any laws without first requiring states to "simplify" their sales taxes, as well as procedures for auditing retailers.

In the last few years, several states have attempted to institute so-called "Amazon taxes," by telling out-of-state online retailers to collect sales tax. But some marketers have challenged those efforts, arguing that they mark an unconstitutional attempt to regulate interstate commerce. Most recently, in April a judge in Illinois struck down that state's attempt to require online companies to collect sales tax from residents.

 
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