WASHINGTON, D.C. – U.S. Senator Heidi Heitkamp today applauded North Dakota Governor Jack Dalrymple for his support of the Marketplace Fairness Act of 2013. Dalrymple and many other North Dakotans have endorsed the legislation, of which Heitkamp is an original co-sponsor, because it will hold remote vendors to the same standards as North Dakota main street businesses. Heitkamp is one of four Senators managing the legislation on the Senate floor this week.

“I applaud Gov. Dalrymple for backing this common-sense legislation that will reaffirm our steadfast support of North Dakota small businesses,” said Heitkamp. “The governor understands that it is unfair to let out-of-state businesses have this tax loophole, while brick-and-mortar North Dakota businesses are held to a different standard.”

The bill has wide bipartisan support. Earlier this week, 74 Senators voted to move the legislation forward. It is also supported by the North Dakota Retail Association, the National Governors Association, the National Conference of Mayors, the National League of Cities, Eckroth Music, Amazon.com, AutoZone, Barnes and Noble, Best Buy, J.C. Penney Corporation, Petco Animal Supplies, Target Corporation and The Home Depot. 

In 1991, when Heitkamp was North Dakota’s Tax Commissioner, the state of North Dakota attempted to make catalog retailers collect the sales tax the state and municipalities were already owed on sales. The debate went all the way to the Supreme Court, which found that the U.S. Congress had the ultimate power to resolve the issue. Since then, the sharp increase in internet sales has sparked renewed interest from state and local governments in leveling the playing field for brick-and-mortar businesses and closing a gaping loophole in our tax system.     

While most consumers are unaware, they are already legally required to pay a use tax on internet purchases. Compliance is very low, but consumers are supposed to fill out their online purchases on a state tax form.

-END-