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National Bicycle Dealer Association

NBDA Backs Fairness in Business and Joins the E-Fairness Coalition

Costa Mesa, California

Bicycle retailers support the Streamlined Sales Tax and Use Tax Agreement (SSUTA)

In a press release dated February 16, the E-Fairness Coalition welcomed the National Bicycle Dealers Association into its organization. This is the first in a series of moves planned by the NBDA to join the fight to create a "level playing field" for retailers by requiring Internet sellers and mail order companies to collect appropriate sales taxes. The NBDA Board of Directors unanimously voted to support fair sales tax collection at its February 1 meeting.

The E-Fairness Coalition is a Washington, D.C. group that advocates streamlining the nation's diverse state tax jurisdictions while pressing for passage of U.S. Senate bill S. 2152 (Sales Tax Fairness and Simplification Act), to establish a system for collection of sales tax on Internet sales.

As Internet sales grow, this is potentially a huge issue for any retailer with a physical store. On-line sellers, mail order companies and other remote retailers have an unfair advantage when they don't have to collect the sales tax that brick-and-mortar stores collect every day," states Fred Clements, NBDA Executive director.

"S. 2152 may not be the ultimate answer because it is limited to Internet companies with annual sales over $5 million, but it is a huge step in the right direction and we will work with other like-minded associations and groups to get it passed and signed into law. We will continue to press for fair sales taxation that does not favor Internet sellers over those with physical stores," Clements said.

According to the U.S. Census Bureau, 33 percent of state revenues come from sales taxes. If online and mail order sellers are not required to collect sales taxes, state and local governments stand to lose as much as $54 billion in revenues by 2006.1 Sales tax revenues fund essential government services including education, law enforcement and transportation. If sales and use taxes are not collected on remote transactions, state and local governments will have to find other ways to offset their losses.2

The NBDA is not alone in taking a stand for fair sales tax collection. Stated in detail on the coalition's website,, this movement represents brick-and-mortar and online retailers, retail corporations and associations, publicly- and privately-owned shopping centers, outlet centers and independently owned shops and a total of over 350,000 retail stores nationwide including the likes of AT&T, Lowes, Radio Shack, National Retail Federation and more.

In support of this movement, sample letters that retailers can use to send to their congressional representatives will be placed on the NBDA web site, along with other resources for our members to become active on this issue. The NBDA encourages all sectors of the bicycle industry to support the e-Fairness Coalition and its mission to advocate fairness for businesses and consumers. Look for more information on this topic at or directly on the e-Fairness coalition website at Media inquiries please contact Michael Baker, or phone 949/202-5500.


National Bicycle Dealer Association

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