To the Honorable Members of the United States Congress:

A Statement of the Retailers Association of Massachusetts

Jon B. Hurst, President
William C. Rennie, Vice President

May 7, 2009

Re: The Main Street Fairness Act

The Retailers Association of Massachusetts (RAM) is a statewide trade association of over 3,100 member companies.  Our membership ranges from independent “mom and pop” retailers to larger, national retail chains.  The retail industry's contributions to the Commonwealth include over $100 billion in annual sales; $4 billion in annual sales and use taxes; approximately 18% of Massachusetts jobs; and operation in over 38,000 locations across the state.

We respectfully wish to be recorded in unconditional support of the Main Street Fairness Act, sponsored by Congressman William Delahunt (D-MA) and Senator Mike Enzi (R-WY).

At a recent hearing before the Joint Committee on Revenue of the Massachusetts General Court, RAM had the opportunity to testify in support of MA House Bill H.2732, An Act to Promote Sales Tax Fairness for Main Street Retailers, filed by State Representative Mark Falzone (D-Saugus).  This state legislation would begin the process to bring the Commonwealth into compliance with the Streamlined Sales and Use Tax Agreement (SSUTA), a voluntary compact between states and the business community to simplify and modernize sales and use tax collection and administration.  It is our hope that Massachusetts will pass conforming legislation in this current legislative session and become a full member Governing Board state in the interstate compact. 

As you know, the Agreement is the result of years of effort by the Streamlined Sales Tax Project, a collaboration of state and local government and the private sector.  Forty two states and the District of Columbia participated in the Project in some form, including Massachusetts, which, pursuant to Section 82 of Chapter 4 of the Acts of 2003, joined the Project as an Implementing State.  The goal of the Streamlined effort is to provide states with a system that includes the following key features:

• Uniform definitions within tax laws
• Rate simplification
• State level tax administration of all state and local sales and use taxes
• Uniform sourcing rules
• Uniform audit procedures

Currently, sellers who lack a physical presence or “nexus” in a state are not required to collect sales and use taxes for that state.  Should the U.S. Congress act to require collection from all sellers for all types of commerce, including remote, internet and catalog sales, those states that have conformed to the Agreement will be in an advanced position and ready to collect, as the Agreement is designed to meet the criteria for congressional removal of existing impediments preventing states from requiring sales tax collection by remote/Internet sellers. 

The eventual endorsement of the Agreement by Congress will allow states to collect sales tax from internet transactions and will level the playing field for our brick and mortar Massachusetts retailers.  With internet sales figures increasing by more than 20% each year, a level sales tax playing field is vital to preserving our Massachusetts retailers' ability to remain competitive. 

We stand ready to assist you in any way we can to help bring this legislation through to final passage and look forward to working with you to that end.   Thank you.