[5] The Supreme Court later ruled in South Dakota v. Wayfair, Inc. that the states are not constitutionally barred from collecting sales and use tax from out-of-state retailers.
[6][7] However, according to the Supreme Court rulings in National Bellas Hess v. Illinois (1967) and Quill Corp. v. North Dakota (1992), retailers, including catalog and online sellers, only need to collect sales and use tax for states where they have a physical presence.
The Marketplace Fairness Act sought to increase compliance and tax collections by shifting the responsibility for payment from consumers to retailers.
Steve Womack organized a group of 30 Republican members that met with Speaker John Boehner and Judiciary Chairman Robert Goodlatte.
If they have online stores, the bill would have allowed participating states to require them to calculate, collect, and pay the new interstate sales tax.
[24] In a press release, the organization argued that the bill would "level the playing field" between online-only retailers and Main Street businesses by giving the States the option to charge sales tax.
[31] In the statement, the White House expresses the concern that small local businesses are disadvantaged because they collect state sales tax in comparison to large online retailers who do not.
Conservative leaders and elected officials have also come out in large to support federal legislation to level the playing field for brick-and-mortar retailers.
William F. Buckley, Editor At Large, National Review: "If the advantage of tax-free Internet commerce marginally closes out local industry, reforms are required… The mattress maker in Connecticut is willing to compete with the company in Massachusetts, but does not like it if out-of-state businesses are, in practical terms, subsidized; that's what the non-tax amounts to.
Local concerns are complaining about traffic in mattresses and books and records and computer equipment which, ordered through the Internet, come in, so to speak, duty free.
"[33] Charles Krauthammer, Columnist and Political Commentator: "The real issue here is the fairness argument – that if you're an old fashioned store, you have to have your customers and you pay the sales tax and online you don't.
"[34] Americans for Limited Government: "The Goodlatte and Chaffetz hearing hopefully helped separate the wheat from the chaff on this basic fairness issue moving the ball toward states being allowed to decide for themselves if they want to collect out-of-state sales tax or not.
Paul LePage, R-Maine, wrote his state's two U.S. senators, Republicans Susan Collins and Olympia Snowe, to urge them to back legislation introduced by Sens.
"[38] Christopher Caldwell, Senior Editor, The Weekly Standard: "California governor Jerry Brown killed two birds with one stone last month when he signed a law that would require internet retailers to collect the state's 7.25 per cent sales tax.
They were giddy with the rhetoric of cyberanarchism and inspired by anti-tax yahoos convinced raising revenue is an optional part of running a government.
"[39] Al Cardenas, Chairman, American Conservative Union (ACU): "A robust free-market system requires a level playing field, where the government doesn't get to pick winners and losers in the marketplace.
Senator Enzi and Congressman Womack deserve praise for their efforts to empower states to make their own revenue policy choices and create a fair system of tax collection.
"[40] Representative Paul Ryan (R-WI-1): "To me, I think the concept is right… It's only fair that the local brick-and-mortar retailer be treated the same as the big-box online sales company out of state.
"[41] Ned Ryun, President and Founder of American Majority: "One of the basic principles of the conservative movement is that the market, not the government, should pick economic winners and losers.
[42] Stephen DeMaura, President of Americans for Job Security: "The Marketplace Fairness Act is a workable solution that finally levels the playing field for small businesses and empowers states to collect the taxes that are already owed.
Most importantly, the Marketplace Fairness Act makes these reforms in a way that puts the ultimate taxpayer first, protecting individuals, empowering consumers, and encouraging economic growth.
'Butch' Otter backs taxing Internet sales to level the playing field between virtual businesses and brick-and-mortar establishments on Idaho's Main Street.
Nathan Deal is considering extending the state sales tax to online purchases, he told newspaper publishers Thursday morning … 'In the absence of congressional activity on that … I think there will be some appetite to act on that in the legislature,' he said."
The National Taxpayers Union (NTU) also spoke out strongly against S.743, urging their organization's supporters to contact their Senators and encourage them to vote against it.
The audit risk is also cited as a principal concern of the E Mainstreet Alliance, a group of small businesses, some of which are online only but many of which also have a brick and mortar presence, who are worried about being crippled by this legislation.
[65] Agricultural Retailers Association (ARA), expressed opposition to the Marketplace Fairness Act in a letter to the House Judiciary Committee.
The research group takes the position that states should enforce use tax laws already on the books without burdening the private sector with the task.
[67] Computer & Communications Industry Association (CCIA) an international not-for-profit organization takes the position that the Marketplace Fairness Act, "creates a new imbalance by requiring small online retailers to administer a tax collection regime for multiple jurisdictions, while brick-and-mortar stores need only collect for the jurisdiction of its physical location.
The association also takes the position that the Streamlined Sales Tax Project (SSTP) is not sufficiently simplified and would "decimate" small online retailers.
[74] Supporters and Opponents: Senate 743: This article incorporates public domain material from websites or documents of the United States Government.