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-- -- I would tax free online shopping may be coming to an end now -- -- let's online retailers like Amazon and overstock avoid charging customers sales tax.
But our next -- introduced a bill in congress and it's gonna change all that are trying to joining us now Republican congressman Steve Womack from Arkansas.
So I think it's important first explain to people -- the current system works currently if -- retailer does not have a presence in your state.
You don't have to pay sales tax right.
That is absolutely correct and that is the basis of the decision.
Of the Supreme Court back in 1992.
With quill corporation.
Which it at the time was -- mail order organization.
And it just basically says that states because of the constitution.
Cannot compel an online retailer that does not have a nexus in their state.
To collect and remit so that bonus for those purchases is on the consumer.
Right now in theory if -- order maples hear from Vermont and there's no presence in my state of New Jersey I should report that sales tax on my tax return of course and nobody does that.
If that if that plant -- from Vermont puts a warehouse in New Jersey all the sudden I do have a state tax bill.
But what you're saying is you want this to just -- across the border.
Is pretty much saved their brick and mortars.
Well it levels the playing field in what it simply does it removes a day -- age old loophole.
It is very punitive to the -- -- to the up to the retail community the traditional brick and mortar retail community.
Because right now if you don't have a nexus -- you can order something from your home from an online retailer.
And then on line retailers not gonna charge you a sales tax that onus is on -- -- your state has a use tax in most states do.
Right and again known as being on the tax -- goes by the wayside often it's called the marketplace equity act of 2011.
Your co I think this with congresswoman Jackie speer.
This is set to be heard July 24 what do you expect to happen.
Well I think it will be fully vetted by the judiciary committee on July 24 there will be a lot of people making their case.
For how the time is now pursuant to the quill decision in 92.
-- for congress to get involved I think that decision in 1992 was an engraved invitation to congress that only congress can solve this dilemma.
And it's high time that congress do that because of the tremendous impact it's having on the brick and mortar institutions that have been the backbone of our retail community for a -- Seeing is that big companies like Amazon overstock are actually rallying coming to the table they get it but yet today is the big detracting here how come.
But I think eBay considers itself more the market place than than a retailer in.
We can agree or disagree on that but yeah you're right that a lot of these online retailers are fully understanding right now that.
This is a great conservative bill.
That allows free enterprise to manifest itself you know remarkable -- so we just believe minutes and and we think it's high time that it be done.
And and what it will do -- give the states the authority to enforce the sales tax -- as you said it levels the playing field.
And helps our little brick and mortars out their congressman while -- good luck with it.
My pleasure thanks thanks for having its bank will you be with you.
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