Retail group hopes to end tax loophole
The National Retail Federation (NRF) is continuing its efforts to end a retail sales tax loophole that is says hurts small businesses in Iowa.
Advocates of eliminating the loophole say that Web-based retailers like Amazon.com unfairly skirt sales tax laws because they do their retail business over the web. The NRF says this loophole hurts small businesses in Iowa because large online retailers are able to undercut them on prices and they don’t have to pay state or local sales taxes.
Gov. Terry Branstad announced his support for the initiative in June.
According to the NRF, in 45 states, including Iowa, online retailers are not required to pay local or state sales tax when selling to customers in states in which they don’t have a physical location.
“The $24 billion in lost sales tax is revenue badly needed by cash-strapped state and local governments to pay the salaries of essential workers such as police officers, firefighters, ambulance crews, and schoolteachers,” according to the NRF.
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