Mid Atlantic Real Estate Journal — Shopping Centers — September 28 - October 11, 2012 — 33A
www.marejournal.com
R ETAIL S ERVICES & P OST ICSC H IGHLIGHTS
By Joe Viscuso, PE, Pennoni Associates Sales tax fairness must be addressed
A
s we enter into this all important election season, it is important
Internet retailers should not receive a tax advantage at the ex- pense of traditional retailers and
to compete on attributes such as price and customer service, not government-imposed sales
tee on Commerce, Science, and Transportation held a hearing on the Senate bill, S. 1832, the
in our industry and those that may have opposing points of view make their voices heard. We can’t sit on the sidelines and assume that these types of issues will get resolved in a manner that will be favorable to the retail industry. Joseph Viscuso, PE, vice president with Pennoni As- sociates in theirWest Chester, PA office, is the chairman of the Government Relations Committee for its Pennsyl- vania/Delaware region for ICSC. In this volunteer role, Viscuso represents the inter- ests of owners, developers, investors, marketers, and other retail specialists across these states. n
for those in our industry to get involved in the political process. Un- derstanding the issues, en- gaging those running for public office,
The International Council of Shopping Centers (ICSC) strongly supports efforts to find a federal solution for uniform sales tax collection. There are currently two similar legislative proposals leading the way - the Marketplace Equity Act (HR 3179) and the Marketplace Fairness Act (S. 1832). By passing this legislation, Congress could level the playing field for community-based retailers, provide needed funds for state and local governments, and lessen the regulatory burden placed on retailers across the country.
Joe Viscuso
state and local governments. The Federal bills would permit states to require retailers to collect sales taxes from purchasers regardless of whether the purchase takes place onMain Street, at shopping centers, via mail order or over the Internet. Retailers should be able
taxes. E-fairness legislation contin- ues to gain momentum in the Congress. In July the House Judiciary Committee held a hearing July 24th on HR 3179, the Marketplace Equity Act. A week later the Senate Commit-
Marketplace Fairness Act. It is hopeful Congress will act after the election during the lame- duck session. As mentioned, we have an obli- gation to engage. In politics, the “squeaky wheel theory” does ap- ply. Those that are not involved
asking questions to determine where they stand on issues are all important to our collective success. As an example, one issue that is important to the retail industry is “Sales Tax Fairness.” States are collectively losing approxi- mately $23 billion in lost sales tax revenue to those doing busi- ness over the internet and not collecting the appropriate sales tax. This creates an uneven play- ing field for “bricks and sticks” retailers that must collect and process sales tax payments. In our regions, Pennsylvania loses about $345 million and New Jer- sey another $202 million. Dela- ware has no sales tax but physi- cal retail generates significant property taxes, payroll taxes and other commercial taxes that help fund state and county govern- ment initiatives. Out of state internet only retailers are not contributing to the fabric of our communities and the funding of essential local services. Online retailers continue to grow. Growth was four times faster that sales made at bricks and mortar establishments. According to the US Census Bureau, online sales grew more than 16% during 2011 while overall retail sales grew 4.7% during the same time period. Online retailers are an impor- tant part of our economy and the numbers indicate that consum- ers will look more and more to this alternative. The issue is to make sure we are all playing the game using the same rules. The International Council of Shopping Centers (ICSC) strongly supports efforts to find a federal solution for uniform sales tax collection. There are currently two similar legisla- tive proposals leading the way - the Marketplace Equity Act (HR 3179) and the Marketplace Fairness Act (S. 1832). By pass- ing this legislation, Congress could level the playing field for community-based retailers, pro- vide needed funds for state and local governments, and lessen the regulatory burden placed on retailers across the country.
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