Small-business owners push for collection of internet sales tax

Arlington Camera owner Bill Porter said his employees sometimes spend an hour helping customers choose thousands of dollars worth of camera gear -- only to lose that sale to an out-of-state online retailer that isn’t required to collect sales taxes on that purchase.

Recently, Porter said, a would-be customer chose not to purchase a $2,700 Nikon lens in the store because he realized he could save more than $200 in sales tax by buying it online.

That’s why Arlington Camera and other small-business owners are throwing their support behind proposed federal legislation that could help them compete with online retailers and bring millions in additional revenue to cities and states.

The Marketplace Fairness Act, currently in the House Judiciary Committee, would allow states including Texas to collect sales and use taxes from online businesses that make $1 million or more in revenue from out-of-state customers.

Reps. Joe Barton, R-Arlington, and Marc Veasey, D-Fort Worth, are co-sponsors of the bipartisan bill.

“Without an equal playing field, it’s almost impossible for small businesses to compete with online retailers that don’t require individuals to pay sales taxes,” Veasey said. “We need a national law that all retailers have to follow.”