Tuesday, October 16, 2018
ICSC Supports E-Fairness Regulations
Since 1974, entrepreneur Elliot Feuerstein has served as an officer of the San Diego, CA-based Mira Mesa Shopping Center. In addition to developing commercial properties for some of the biggest retailers and fast food franchises, Elliot Feuerstein is an active member of the International Council of Shopping Centers (ICSC), which advocates for E-Fairness legislation.
Because of a precedent set in 1967, until recently, online companies were not considered liable for sales tax since they did not meet the standard of physical presence. However, local brick-and-mortar retailers determined that this gave online stores an unfair advantage. Additionally, this caused states that levy sales taxes to lose tens of billions of dollars in revenue, which was projected to reach $211 billion in uncollected taxes by 2022.
In 2018, the United States Supreme Court weighed in on the case of South Dakota v. Wayfair and voted in favor of reversing the 1967 ruling. Since the decision, 32 states have begun passing legislation that requires remote and online retailers that sell a significant number of goods across state lines to pay sales tax.