The Oregon House of Representatives sent a message to the U.S. Congress today: Don’t impose an online sales tax on Oregon’s businesses. The measure, House Joint Memorial 18, comes in reaction to passage by the U.S. Senate of the “Marketplace Fairness Act” which would require Oregon retailers with more than $1 million in out-of-state sales to collect and remit that state’s sales taxes.
“This federal mandate would put a heavy burden on Oregon’s small businesses and eliminate their competitive advantage,” said Rep. Vicki Berger (R – Salem). “At a time when Oregon’s economy is still recovering, the federal government needs to stop throwing cold water on our local retailers.”
The impact of the federal online sales tax would be significant on Oregon’s businesses. First, because Oregon does not have its own sales tax retailers located in the state, in particular small businesses, lack the infrastructure to collect and remit sales taxes. Second, a federal requirement to collect sales taxes from purchases outside Oregon would take away an economic advantage Oregon’s businesses currently enjoy.
The measure passed the House on unanimous bipartisan vote.
