Memorandum

City of Lawrence

City Manager’s Office

TO:	Mayor and City Commission
FROM:	City Manager David L. Corliss
DATE:	May 9, 2013
RE:	Marketplace Fairness Act

The City of Lawrence has been a long standing supporter of federal legislation which would require internet and catalog retailers to collect state/local sales taxes.   This legislation is required because the U.S. Supreme Court has determined that federal law does not currently permit states and localities to collect sales tax unless the retailer has a local/state presence or nexus to the jurisdiction imposing the sales tax.

There has been recent movement in Congress concerning the Marketplace Fairness Act, S. 743.  The bill passed the U.S. Senate on Monday, May 6, and will now be considered by the House of Representatives.  It is believed that this legislation may either proceed on a stand-alone basis or be part of a larger re-write of tax or budget laws.  Staff recommends that the City Commission consider sending new correspondence to our federal delegation urging their favorable consideration of this legislation.