Local retailers call it the Main Street Fairness Act and if passed by the House it would require Internet retailers to collect sales tax for online purchases. About ten percent of the sales at stores like Prairie Edge, in downtown Rapid City go to Internet sales.
General Manager at Prairie Edge, Dan Tribby, says there's no way to compete with giant online retailers who offer a four to six percent discount in addition to no sales tax. If this bill passes, tribby says it will level the playing field.
"It just kind of levels the playing field for mom and pop operations and really, Main Street businesses. For any of us to compete with Amazon.com, just isn't going to happen," said Tribby.
States would also get new revenue through this bill. It's estimated there was more than $11 billion in uncollected taxes from online purchases in 2012. The bill passed the Senate yesterday, but it's future in the House is uncertain.