NAED Sends Letter of Support to Congress

This week, the National Association of Electrical Distributors (NAED) sent a letter of support to Capitol Hill. The letter shows the association’s, and the industry’s, appreciation of Senator Michael Enzi’s and Congresswoman Kristi Noem’s work to introduce two bills that are aimed at leveling the playing field between online sellers and brick and mortars.

Below, read the letter in it’s entirety:


Dear Senator Enzi and Congresswoman Noem;

The National Association of Electrical Distributors applauds and supports your introduction of the Marketplace Fairness Act (MFA) and the Remote Transaction Parity Act (RTPA). Electrical distributors, like many other businesses in the distribution industry, work on tight margins, tight enough that online sales that avoid sales taxes are enough to hurt the industry as a whole. These bills will allow our members to compete on a level playing field with online retailers in other states that have an unfair advantage by avoiding tax collection.

With the rise of Internet sales, our members have been losing business to companies that exploit tax avoidance as a business practice; this unfair practice hurts our industry and many others. By implementing online collection of sales tax at the destination is gives price parity for goods in both online and local markets. Destination sourcing makes the most sense for consumers and businesses, by not penalizing online retailers for being located in states with high sales taxes, it allows consumers to pay their state sales tax rate.

MFA and RTPA also improves upon past proposals for payment of state sales taxes by ensuring that businesses and consumers are protected. Through single point of collection, implementing a uniform tax base for sales and use taxes, and free certified software options this legislation will simplify the collection of sales taxes. The simplified system of using certified software providers for audits will also help make the process easier for businesses taking part in remote sales.

As business models change, this legislation will maintain a level playing field for businesses across the country and into the future. These much-needed changes are supported by our members and will help our industry to grow in new ways. Thank you for your leadership on this issue and we look forward to seeing this legislation enacted.


Edward M. Orlet
Vice President of Government Affairs
National Association of Electrical Distributors


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