Resolution to Support Federal Efforts to Require Internet-Only Retailer to Collect Sales Tax
Whereas, in 1992 the Supreme Court ruled that on-line retailers that did not have a physical nexus (presence) in a state were not required to collect sales tax in order to give competitive advantage to this new industry, and
Whereas, on-line retailers like Amazon, the largest on-line retailer in the world, no longer need this competitive advantage and mislead the public who then think they are not responsible for paying this sales tax and deprive California of this needed revenue and put California’s brick and mortar and on-line merchants who do collect sales tax at a severe competitive disadvantage resulting in a loss of revenue, employment opportunities and property tax, and
Whereas, other on-line retailers such as Barnes and Nobel, Wal-Mart, Best Buy and Target do collect on-line sales tax,
Therefore be it resolved, that the Los Angeles County Democratic Party supports Federal efforts to pass a law that will correct this problem by creating a simple nationwide system of state and local sales tax collection evenhandedly applied to all sellers, no matter their business model, location or level of remote sales, and
Be it further resolved, that the Los Angeles County Democratic Party requests that the Democratic delegation to Congress do everything within its means to pass a Federal law that will overturn the “physical presence” requirement and support a system that is fair and does not unduly burden small merchants and send this Resolution to our State and Congressional delegations and issue a press release about this action.
Submitted by Carole Lutness, 38th AD
Passed by LACDP 8/9/11