From Home Furnishing Business
NAHFA Lobbies for Internet Sales Tax Fairness
The organization has sent a letter to U.S. Rep. Robert Goodlatte (R-Va.), chairman of the House Judiciary Committee, asking him to draft legislative language based on his "Basic Principles of Internet Sales Tax".
The Judiciary Committee is holding a hearing entitled “Exploring Alternative Solutions on the Internet Sales Tax Issue” Tuesday March 4 at 10:30 a.m. in Washington, D.C.
The letter explains that like many others in the retail industry, furniture retailers are facing increasing competition from online sales. Industry data suggests that e-commerce Web sites sold $2.4 billion in furniture in 2011 and that number is expected to double by 2016. Online furniture sales increased 11.1 percent year-over-year in 2012 and account for roughly 9 percent of total furniture sales.
The NAHFA suggests special treatment of online sellers distorts the market and puts local brick-and-mortar businesses at a competitive disadvantage.
“Our members are strong pillars of the local community and are very well-known, respected, and involved with local activities,” Sharron Bradley, NAHFA CEO, wrote in the letter to Goodlatte. “When their businesses are threatened because they cannot beat an online price point purely due to the application of the sales tax, that not only negatively impacts the owner and the employees, but it creates a ripple effect in a community that will not be repaired by a Web site that has no connection to that locale.”