Internet businesses should pay taxes, too
This letter is in response to a submission regarding legislation that is supported by the local business community, the Marketplace Fairness Act. Organizations like the Downtown Naperville Alliance and Naperville Area Chamber of Commerce support this.
The legislation would establish a framework where online purchases are no longer exempt from locally assessed retail taxes. The bill would require online-only businesses to collect for locally assessed taxes that are due at the time of purchase.
This relieves shoppers of having to track and self-report these transactions.
Businesses that invest in downtown Naperville, or in any community, are required to comply with the applicable taxes rates and collection process. Businesses selling goods to citizens in our community shouldn't be organized through the Internet to avoid locally applicable taxes.
The time has come and technology has advanced sufficiently to require compliance from online businesses, too. If they can use our interstate commerce system to sell goods in our community, they shouldn't be allowed to legally use tax avoidance as a business strategy.
It is important to remember that if certain businesses are exempt from their share of the tax burden, it is shifted to others in the community. It makes no sense to continue to subsidize out-of-town businesses and leave local citizens to pick up the tab.
The simplest and fairest way to move forward is to require retailers to assess and collect the tax due for where they are selling.
The bill is about modernizing the tax system and establishing a framework for tax compliance.
This legislation deserves a vote and we thank Senators Durbin and Kirk for their support earlier this year.