Sessions’ office offered Yellowhammer a statement explaining his vote on Tuesday afternoon. According to the statement, Sessions said the measure would level the playing field for in-state businesses competing against Internet retailers.
“Under current law, our local brick and mortar, main street businesses are required to collect a sales tax, while many Internet sellers do not do so,” Sessions said. “When out-of-state online retailers are not held to the same standard, it is not fair to our in-state businesses who are in compliance.”
Jonathan Graffeo, a spokesman for Shelby’s office, explained to Yellowhammer why Shelby supported the measure. He said Shelby supported it because it allowed for taxes to be collected that are already on the books.
“Sen. Shelby supports the legislation because it provides a mechanism for the payment of taxes that are already on the books but are not collected,” Graffeo said in an email.
The measure passed the Senate by a 69-27 vote.
In the House, Alabama Congressman Spencer Bachus (AL-06) is one of the co-sponsors of the Marketplace Fairness Act.
Bachus told AL.com’s George Talbot that Governor Bentley is supportive of the bill, and that Alabama loses more than $260 million annually in tax revenue from Internet purchases. “It has long been my personal view that the current collection system is complicated and not very workable,” Bachus said.
Capitol Hill insiders told Yellowhammer last week that they are expecting to see a strange mix of Republicans and Democrats voting in favor of the measure in the House, just as they did in the Senate.
“The lobbying effort in favor of the tax has been far more effective than the lobbying effort opposed to it,” one Hill staffer said. “They’ve been quiet and steady without the outside groups whipping up either side.”
Jeff Poor is the media reporter for the Washington, D.C.-based Daily Caller. He is also a columnist for Mobile-based Lagniappe and a Yellowhammer contributor. He is a graduate of both Auburn University and the University of South Alabama.
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