Tennessee Gov. Bill HaslamTennessee Gov. Bill Haslam will testify in front of the U.S. House Judiciary Committee on Tuesday where he will voice support of federal legislation granting states the power to make all online retailers collect sales taxes.
“He’ll be testifying about the Marketplace Equity Act and leveling the playing field between online retailers and brick and mortar businesses,” Haslam spokesman David Smith said in an email.
Many states, including Tennessee, have been clamoring for years to persuade Congress to resolve problems arising from a 1992 U.S. Supreme Court decision. The court held that retailers were only obligated to collect sales taxes from customers in states where the companies are physically located.
With the explosive growth of e-commerce sales, there usually aren’t stores. States say resolving the issue, is critical to their finances.
And they have help from brick-and-mortar stores, including chains like Wal-Mart, as well as mall operators like Chattanooga-based CBL & Associates who say traditional retailers are at a competitive disadvantage because they have to collect sales taxes while e-tailers don’t.