WASHINGTON, D.C. – This week, U.S. Senator Heidi Heitkamp will be one of four Senators leading the charge to provide North Dakota retailers a level playing field against out-of-state internet retailers. Heitkamp’s history and expertise on the issue prompted the sponsors of the Marketplace Fairness Act of 2013 to request her to have a leadership role.

In 1991, when Heitkamp was North Dakota’s Tax Commissioner, the state of North Dakota attempted to make catalog retailers collect the sales tax the state and municipalities were already owed on sales. The debate went all the way to the Supreme Court, which found that the U.S. Congress had the ultimate power to resolve the issue. Since then, the sharp increase in internet sales has sparked renewed interest from state and local governments in leveling the playing field for brick-and-mortar businesses and closing a gaping loophole in our tax system.      

“This legislation does not create new or increase existing taxes. It simply would give states the right, if they want, to collect state and local sales and use taxes on internet purchases that they are already owed,” said Heitkamp, an original co-sponsor of the Marketplace Fairness Act of 2013. “Small businesses in North Dakota are currently at a disadvantage, because they are required to collect sales taxes, while internet companies are not and can sell their product at a lower price. The bill would also help states and localities collect about $23 billion annually that they are already owed. This will help balance their budgets without cutting services or increasing taxes.”

While most consumers are unaware, they are already legally required to pay a use tax on internet purchases. Compliance is very low, but consumers are supposed to fill out their online purchases on a state tax form.

The bill has wide bipartisan support. During the recent Budget debate, a bipartisan majority of Senators expressed support for the Marketplace Fairness Act. It is also supported by Amazon.com, the National Governors Association, the National Conference of Mayors and the National League of Cities.   

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