Texas becomes latest state to tax online retailers

ARLINGTON, Va. — Texas joins eight other states in taking legislative action requiring online-only retailers, notably Amazon.com, to collect sales tax. Online retailers will have to collect sales tax in Texas beginning July 1.

"A true free market is devoid of government preferences and special treatment," said Sandy Kennedy, president the Retail Industry Leaders Association. "Texas has made a powerful statement that its time to end special treatment for online retailers and close the sales tax loophole that gives companies like Amazon an artificial leg up on Main Street retailers."

Eight states have followed Texas' lead and passed legislation or taken administrative action in the past year to help level the retail playing field by requiring online retailers like Amazon to collect sales tax. California and Pennsylvania are next up, with both states requiring Amazon to collect sales tax in September. New Jersey Governor Chris Christie and Virginia Governor Bob McDonnell recently struck agreements with Amazon in their respective states, with Amazon beginning sales tax collection next year.

"States are leading the charge to level the playing field, but can only go so far to close the sales tax loophole on their own -- it's time for Congress to act," said Kennedy. "Congress should act this year to pass the Marketplace Equity Act in the House, and the Marketplace Fairness Act in the Senate."

To date, fifteen Republican governors have called on Congress to act.

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