The National Retail Federation has launched a 60-day campaign to raise awareness about online companies’ exemption from sales taxes, which it believes is hurting local communities and job creation.
The sales tax loophole, created in 1992, states that remote sellers can be required to collect sales tax only in states where they have physical presence. Under this rule, most online sales go untaxed.
NRF’s campaign includes grassroots events, an online petition, targeted advertising, social media interaction, and a media relations initiative.
“Our current sales tax system unfairly favors one set of retailers over another,” Matthew Shay, NRF President and CEO, said in a statement. “Congress is naming winners and losers by its failure to address this issue, and the brick-and-mortar retailers who create jobs across our country want action on this issue now.”