Sales Tax Initiative

Many states, cities, and counties are watching their sales tax revenues decrease and their budget shortfalls grow as more and more consumers buy via the Internet, where many national retailers do not collect sales tax. Some politicians in Washington are looking to address this issue by introducing legislation that would give states the power to enforce simplified rules for collecting sales tax across state lines.

On Wednesday, October 1, retail organizations and Colorado Governor Bill Owens testified before a House subcommittee at an oversight hearing regarding The Streamlined Sales Tax Agreement (H.R. 3184), a bill that would allow states to simplify sales tax, with equal tax treatment between local merchants and remote sellers. Congressmen Ernest Istook (R-OK) and William Delahunt (D-MA) introduced the legislation last Thursday.

On Thursday, September 25, Representatives Ernest Istook (R-OK) and William Delahunt (D-MA) introduced legislation into the U.S. House of Representatives that would allow states to simplify sales tax, with equal tax treatment between local merchants and remote sellers. It is also expected that Senators Byron Dorgan (D-ND) and Michael Enzi (R-WY) will introduce a similar bill into the Senate next week.

ABA President Ann Christophersen

In a letter dated May 22, sent on behalf of ABA member bookstores, ABA President Ann Christophersen once again urges the state governors and other elected officials in the 45 states that charge sales tax to immediately take step

On May 8, by a 23 to 15 vote, the California State Senate passed Senate Bill 103, which would clarify existing California sales tax laws and require retailers with bricks-and-mortar stores or warehouses in California to charge sales tax for purchases made online by California residents. The bill, S.B. 103, was introduced by Senator Deirdre Alpert (D-San Diego) in late January. The bill now goes to the State Assembly.

At its April 23 meeting, California's State Board of Equalization (BOE) voted 3-2 to conduct a full-scale audit of Barnesandnoble.com to determine if the online retailer has nexus in the state of California. The vote came after the Board reaffirmed its September 12, 2002 decision that Barnesandnoble.com was obligated to pay California back use taxes for a period of four months -- from November 15, 1999 to March 31, 2000 -- because Barnes & Noble stores were offering coupons discounting purchases made at Barnesandnoble.com.

On March 26, California's Senate Revenue and Taxation Committee approved a bill that would clarify existing California sales tax laws and force retailers with bricks-and-mortar stores or warehouses in California to charge sales tax for purchases made online by California residents. The bill, S.B. 103, was introduced by Senator Deirdre Alpert (D-Coronado) in late January.

Independent booksellers, including Kepler's, protest state's tax system

By David Boyce
Almanac Staff Writer

ABA President Ann Christophersen today called upon Amazon.com, Barnes & Noble, and Borders to follow the lead of national retailers that recently have begun to collect sales tax on their online sales. The news of the retailers' decision comes just days after more than 560 independent booksellers nationwide joined as co-signers on letters to their state governors calling for the states to enforce state tax laws fairly and uniformly.

This week over 560 independent booksellers nationwide joined ABA President Ann Christophersen in signing letters urging their state governors and other elected officials to immediately take steps to enforce state tax laws fairly and uniformly. Specifically, the letters call for states to require retailers with a physical presence in their respective states to collect sales taxes on online sales. (To read the full text of the letter, click here.)

This is the last opportunity for booksellers to add their names to an important ABA letter calling for sales tax fairness. The letter will soon be sent to the U.S. governors in the 45 states that collect sales tax and will call on them to enforce existing tax regulations by making sure that retailers with a physical presence in their states collect sales tax on online sales.

While hundreds of booksellers have signed on to the letter, ABA is hoping that even more booksellers will join their colleagues before the letter is mailed.

There is still time for booksellers to add their names to an ABA letter calling on U.S. governors in the 45 states that collect sales tax to enforce existing tax regulations by making sure that retailers with a physical presence in their states collect sales tax on online sales. Hundreds of booksellers have already added their names to the letter, but ABA is looking to include the signatures of as many ABA member stores in these states as possible.

Hundreds of booksellers nationwide have signed on to an ABA letter calling on U.S. governors in the 45 states that collect sales tax to enforce existing tax regulations by making sure that retailers with a physical presence in their states collect sales tax on online sales. Close to 300 booksellers have already responded to an e-mail last week from ABA COO Oren Teicher about the communications effort.

This week many booksellers nationwide received an e-mail from ABA COO Oren Teicher regarding the American Booksellers Association's efforts to achieve greater equity regarding the collection of sales tax on online sales. The e-mail noted the letter that ABA recently sent to the U.S. governors in the 45 states that collect sales tax. In that letter, ABA again called on states to fully enforce existing regulations by ensuring that retailers with a physical presence in their state collect sales tax on online sales.