Outdoor Industry Association Supports Introduction of The Marketplace Fairness Act
For Immediate Release
I Ling Thompson
Vice President of Communications
Outdoor Industry Association
Legislation helps level the playing field for brick-and-mortar specialty retailers
BOULDER, CO (November 9, 2011) – Outdoor Industry Association (OIA) commended today’s introduction of The Marketplace Fairness Act in the U.S. Senate. The legislation, introduced by Senators Durbin (D-IL), Enzi (R-WY), Johnson (D-SD), and Alexander (R-TN), would give states the option to collect sales tax on purchases from out-of-state retailers made via the Internet and/or through mail order catalogues.
“Brick-and-mortar specialty outdoor retailers are currently at a competitive disadvantage to Internet-only retailers that don’t always collect sales tax,” stated OIA President and CEO Frank Hugelmeyer. “OIA supports a level playing field for all retailers in the outdoor industry.”
Last year, Internet sales accounted for about $1.1 billion, and nearly 10% of all outdoor products sales. OIA believes that this growth should be promoted and cultivated, but not at the expense of other sales channels.
Currently, not all states collect tax on sales transacted over the Internet or through mail order catalogues, creating unfair competitive advantages over brick-and-mortar specialty retailers.
The Marketplace Fairness Act aims to coordinate the increasingly confusing patchwork of state laws that are difficult to understand and enforce. Notably, the proposed legislation does not require states to collect sales tax nor does not create or increase taxes.
The OIA Board of Directors recently approved a position statement supporting a coordinated, national standard for states to collect sales tax on Internet purchases from remote retailers. The Marketplace Fairness Act addresses many of the points raised in that position statement, including an exemption for small businesses and support for businesses to ease the burden of compliance.
About Outdoor Industry Association
Based in Boulder, CO, Outdoor Industry Association® is the leading trade association for the outdoor industry and the title sponsor of Outdoor Retailer. OIA supports the growth and success of more than 4,000 manufacturers, distributors, suppliers, sales representatives and retailers of outdoor recreation apparel, footwear, equipment and services. For more information go to outdoorindustry.org or call 303.444.3353.