Two weeks after Cyber Monday, Sen. Debbie Regala is calling on Washington to join the drive to create a level playing field by enforcing the collection of sales and use tax on remote or online sales.
“By not collecting this tax, Washington retailers are put at a competitive disadvantage,” Regala said. “This hurts our local businesses and it erodes the revenues that fund our public services.”
Regala is sponsoring Senate Joint Memorial 8009, a resolution asking Congress to authorize enforcement of the collection of the retail sales tax by out-of-state sellers that have no physical presence in Washington. As of now, the collection of that tax is only voluntary; without action by Congress, in state businesses are losing sales to online purchases through out-of-state merchants who do not collect state sales taxes
“The resolution deals with an imbalance that only law can change,” said Mark Berejka of REI. “Our online competitors have many advantages, one of which is that they do not have to collect this tax.”
In addition to in-state businesses being passed over, Regala says every dollar not collected is revenue the state loses. That total loss is projected to be $483 million in the 2013-15 biennial budget.
“We all know that the marketplace is really changing and many more people are shopping online through out of state businesses, so the state of Washington continues to lose a lot of sales tax revenue,” Regala said.
Washington first began working for congressional action in 2007 when it brought its sales and use tax statutes into compliance with the national Streamlined Sales and Use Tax Agreement. As of Nov. 30, 23 other states have brought their laws into compliance with the agreement, while over 1,700 businesses have registered under the agreement to collect and remit the taxes. Along with the state and business support, Regala says congressional interest in passing legislation has never been higher.
“This year, three pieces of legislation dealing with this issue have been introduced in a bipartisan manner,” Regala said. “Now’s the time for the state of Washington to make it known that we are very interested in their following through.”
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For more information: Ian Cope, Senate Democratic Communications, 360-786-7535
For interviews: Sen. Debbie Regala, 360-786-7652