Online shopping, it’s convenient but we never consider how it affects local businesses.
"Online businesses have an advantage over brick and mortar retail stores because they don't have to charge taxes," said Decatur city councilman Pat McDaniel.
Anytime a consumer purchases something online they aren't paying a sales tax. Something local and state leaders are looking to change.
"Not just myself, but others see this is a key area that needs to be worked on. It comes down to finances. and keeping enough revenue coming in to different local governments," added Pat.
In 2015 a bill called the Market Place Fairness Act was drafted. The bill aimed to add a sales tax to all online purchases. In 2016 it passed in the senate but stalled in the house.
"Let’s say you go online to a Walmart website and you order something and it's delivered to your home. The sales tax of wherever it came from whatever distribution center of whatever online business, that city they get the sales tax not the local area where the customer lives," states Pat
By enacting this proposed legislation city leaders are hopeful it will boost local economy.
"For them to continue, the playing field for getting shoppers needs to be leveled and this is one way to do it,” said Pat.
The national conference of state legislatures estimates that in 2012 alone, states collectively lost $23 billion in revenue from uncollected sales or use tax. An issue law makers nationally are hopeful to fix.
