WASHINGTON, D.C. – U.S. Senators Angus King and Susan Collins announced today that they, along with a bipartisan group of their colleagues, have reintroduced legislation that would allow local brick-and-mortar retailers to compete on a level playing field with out-of-state sellers. The Marketplace Fairness Act of 2015 would give states the option to require out-of-state businesses, such as those selling online or through catalogs, to collect sales and use taxes already owed under State law the same way local businesses do. This bill does not create new taxes or increase existing taxes.

“For far too long, brick-and-mortar retailers have struggled to compete on an uneven playing field against internet competitors who are not required to collect sales and use taxes,” Senator King said. “Businesses selling the same products should be treated equally, which is why this common sense bill restores the states’ right to decide for themselves how to enforce state and local tax collection, and also includes an important provision ensuring that businesses will have sufficient time to come into compliance with the law. Businesses across Maine have enough to worry about already. It’s past time that Congress returns this power to the states and gives Main Street a chance to compete.”

“By eliminating an unfair competitive advantage that online out-of-state retailers have over Maine’s brick-and-mortar stores, this bill would level the playing field for the Mom-and-Pop shops on Main Street that strengthen our local economies,” said Senator Collins. “It is important that Maine retailers have an equal opportunity to thrive and aren’t disadvantaged by tax loopholes.”

The legislation also includes provisions authored by Senators King and Collins that would:

• grant additional flexibility to retailers by allowing a one-year phase in period to implement the provisions of the bill, and
• prohibit states from beginning to require the collection of sales tax from remote sellers during the last quarter of the year

Together, these provisions would provide retailers adequate time to update their tax collection systems and ensure that customer experience will not be affected as a result of the legislation.

“The Retail Association of Maine is pleased to have Senator King's and Senator Collins’ ongoing support of the Marketplace Fairness Act,” said Curtis Picard, Executive Director of the Retail Association of Maine. “Maine's retailers deserve a level playing field and this bill is imperative to the future of our Main Street retailers. It is time for Congress to act.”

With the support of Senators King and Collins, the Senate in May 2013 overwhelmingly supported passage of the legislation but it was never considered by the House of Representatives. The bill was also introduced by Senators Mike Enzi (R-Wyo.) Dick Durbin (D-Ill.), Lamar Alexander (R-Tenn.) and Heidi Heitkamp (D-N.D.) along with Senators Roy Blunt (R-Mo.), Jack Reed (D-R.I.), Bob Corker (R-Tenn.), and Sheldon Whitehouse (D-R.I.) as cosponsors.

###