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Senator Tester Standing up for Montana’s small businesses – No to Internet Sales Tax

In Montana, we do not have a statewide sales tax. In fact, Montanans have voted twice against adopting a sales tax.

Our state maintains a budget surplus without a sales tax because we live within our means and responsibly manage our budget.

Unfortunately, other states have not followed our lead. And now they are trying to balance their budgets on the backs of our small businesses. This is wrong, and it’s a slap-in-the-face to hard-working Montanans.

The Marketplace Fairness Act is Congress’s attempt to reach into the pockets of Montana’s small businesses. The bill would require small businesses to collect sales tax on behalf of other states and local governments when selling products over the internet. Small businesses in places like Montana would then be responsible for forwarding those sales tax revenues to the state or locality in which the customer resides.

Under the bill, small businesses in Montana could be forced to collect sales tax for up to 9,600 other states, cities and municipalities. It goes without saying that in addition to cutting into our small businesses’ profits, the bill will burden them with new and complicated regulations and paperwork.

Many Montana businesses depend on internet sales. One small business owner told me flat-out, the bill "would fundamentally hurt my bottom line." The Marketplace Fairness Act would be unfair to Montana businesses like his.

I also oppose this bill because it would fundamentally alter the rights of states. By empowering one state to reach into the pocket of a business owner living in another state, the bill sets a dangerous precedent for the erosion of states’ rights.

I empathize with states that have their budgets underwater. But they should start by practicing sound financial management before looking to places like Montana that have played by the rules.

When I return to Washington today, I will continue to stand up for Montana and encourage my colleagues to join me in opposing the Marketplace Fairness Act. We need common-sense, balanced solutions to put our fiscal house back in order, not poorly written and irresponsible policies that kick the can down the road.

It’s an honor to serve you and Montana’s small businesses in the U.S. Senate. As part of my efforts to support Montana’s small businesses, I will be holding my 13th Small Business Opportunity Workshop in Bozeman on May 17. It will connect national tourism industry leaders with Montana businesses to expand tourism opportunities and create jobs in the Big Sky State. I encourage everyone interested to RSVP at tester.senate.gov/rsvp.

Please do not hesitate to contact me with any questions or concerns. http://www.tester.senate.gov/

Be well,

Jon

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