Washington ICSC members held their annual “Day at the State Capitol” last week in Olympia. The group met with approximately 20 members of the General Assembly to discuss key issues impacting the industry, with the primary focus being the collection of online sales tax, also known as e-fairness or the Marketplace Fairness Act (MFA).
Many states, including Washington, are currently pursuing state-based MFA legislation due to the inability of Congress to pass federal legislation to level the playing field for online-only sellers and bricks and mortar retailers. During the “Day at the State Capitol” event members met with Senator Steve Hobbs, the primary sponsor of Senate Bills 5855 and 5856.
These bills would establish a $267,000 economic nexus threshold, meaning once an out-of-state retailer sells more than that amount to Washington consumers the retailer must collect and remit sales tax to the state. The only difference between SB 5855 and SB 5856 is how the new sales tax revenue is appropriated (one sends revenue to the general fund, the other to a “safety-net” fund.)
The legislation is modeled after a 2016 South Dakota law that established a $100,000 economic threshold for that state. For more information contact ICSC GPP at email@example.com.