SUPPORT THE MAIN STREET FAIRNESS ACT

WHEREAS, the 1992 Quill decision allowed remote and online sellers to escape the sales and use tax collection obligations that main street "brick and mortar" counterparts are subject to; and

WHEREAS, when one type of seller has to collect a tax and the other doesn't, it creates an unfair advantage. While the recession has hurt most of the brick and mortar retailers, online-only retailers have been able to weather the recession better by exploiting this advantage; and

WHEREAS, Forrester Research has forecast that online retail sales will continue double-digit growth over the next five years reaching nearly $249 billion by 2014; and

WHEREAS, the Supreme Court in the Quill decision specifically said Congress has the authority to pass legislation that would establish reasonable ground rules on the issue of online sales tax requirements; and

WHEREAS, the Main Street Fairness Initiative is an effort to enact the much-needed, fair federal legislation that will simplify the sales tax collection process and balance the interests of the states, Internet operations and Main Street businesses to keep our economy moving forward; and

WHEREAS, sales taxes not collected on online sales are never collected and contribute to state and local government budget deficits; and

WHEREAS, without congressional action, states may be forced to cut additional public sector employees such as education employees, first responders and employees who protect our very democracy:

RESOLVED, that the American Federation of Teachers promote congressional action to grant states the authority to collect this important source of revenue and take the burden off the consumers who are ultimately responsible for paying their own sales and use tax.