Promising Activity in US Senate on Sales Tax Front
The US Senate is planning to vote on the Marketplace Fairness Act (MFA) this week. In March the Senate passed a vote of confidence with a large majority of 75 to 24. We hope a vote happens this week, and that it is in favor of the MFA.
While passage will be great news and show strong confidence in the bill, the House of Representatives is the body that must pass all finance/tax bills. That could still take several months.
The MFA is federal legislation that renders the Affiliate Nexus Tax laws null and void. The MFA is based on the concept that technology makes sales tax collection easy to accomplish, so it requires all retailers, whether online or offline, to collect sales tax for all states. When passed, it means advertisers can reinstate their affiliates in the 9 states where unconstitutional state laws were passed, devastating the income of 76,000 affiliate marketers.
The MFA is not only supported by the PMA but by online and offline retailers like Amazon, Overstock, Target and many others.
Last year the PMA helped build strong bi-partisan support in Congress, but the issue was derailed by other political activities. We are pretty confident we will eventually see MFA pass in 2013, although it will take time and work.
The PMA will be building a grassroots effort soon, so please stay tuned to join our efforts.