Suzan DelBene Takes Fair Internet Tax Legislation on Tour

Suzan DelBene visited local retailers in Kirkland last Thursday to discuss the need for legislation to close an Internet tax loophole that she says makes it hard for "Main Street" businesses to compete with out of state companies.

The First District Congresswoman began her tour at The Grape Choice, sitting down with representatives from the Kirkland Chamber of Commerce, the Washington Retail Association, and REI to talk about a proposed budget change that would allow states to require out-of-state online retailers to collect sales taxes.

Currently, retailers are only required to collect taxes if they have a brick and mortar business location in a state.

DelBene continued her tour at local businesses such as the Kirkland Bicycle shop, where partners Josh Harris and Neil Wechsler talked about the struggles they face competing with out of state Internet sellers.

The bike shop owners and Marc Berejka, REI government affairs director, both talked about postential customers entering the store and utilizing the expertise of employees to find just the right bike or snowboard, then promptly going outside and finding the item cheaper on their iPhone from a company that doesn't have to pay taxes, a phenomenon they call "showrooming."

DelBene is an original co-sponsor of legislation in the House, called the Marketplace Fairness Act. The legislation is currently in the Judiciary Committee, of which DelBene is a member.

By enacting the Marketplace Fairness Act this year, DelBene said Congress would provide a pathway for Washington state and localities to collect an estimated $284 million in the 2013-15 biennium and an estimated $845 million in the 2015-17 biennium, according to the state Department of Revenue. These dollars could help close looming budget deficits that Washington state and many local governments face over the next few years.