Senate Passage of Marketplace Fairness Act
Hailed by IREM as Legislative Victory in Which it Had a Hand

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(Chicago, May 7, 2013) –The Institute of Real Estate Management (IREM), which has advocated aggressively for passage of the Marketplace Fairness Act, hailed yesterday’s passage in the Senate of S. 743 as a legislative victory in which it was proud to have a hand. The bill, which passed with a vote of 70 (yes) to 24 (no), would allow states to regulate and collect taxes on annual remote sales over $1 million.

Earlier last month (April 10), IREM Members held some 240 meetings with senators, representatives and their staffs urging them to modernize our nation’s tax policy and provide equity between online and brick-and-mortar retailers. While the bill still must be voted on affirmatively by the House of Representatives in order for it to become law, IREM is convinced that yesterday’s Senate vote is a sign that passage of the bill is gaining great positive momentum.

Issue Highlights: Under current law, purchases made online are subject to sales tax through what is known as a use tax. Consumers who live in states with a sales tax are legally obligated to report and pay sales taxes on ALL purchases made online, although the majority of them are unaware of this obligation, and very few pay this sales tax. Conversely, brick and mortar retailers are required by law to collect the tax on behalf of the state. This inequity is putting some stores out of businesses because online retailers are not paying the same rate in taxes.

IREM Position: IREM supports consistent state/local sales/use taxes for economically equivalent transactions in the state or locality in which the goods are delivered. IREM supports a level playing field for local in-store retailers and remote merchants (including Internet merchants). IREM believes that local and state governments should enforce existing taxes rather than create new ones. IREM firmly opposes any new programs that would impose taxes on the cost of such services, such as fees and other costs associated with the purchase and ownership of real estate.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM) is an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing. An affiliate of the National Association of REALTORS, IREM is the home for all industry professionals connected to real estate management – and the only organization serving both the multi-family and commercial sectors.

We believe that good management matters, and that well-managed properties pay dividends in terms of value and in the quality of life for residents, tenants and customers. We believe in professional ethics. We believe in the power of knowledge and the importance of sharing it.

IREM offers a variety of membership types for professionals of every experience level, from on-site managers to high-level executives. Our credentials, earned by meeting high standards of education, experience, and ethical business practices, include: Certified Property Manager (CPM), Accredited Residential Manager (ARM), Accredited Commercial Manager (ACoM), or Accredited Management Organization (AMO).

Since 1933, IREM has set the standard for best practices in real estate management. Today, IREM membership includes nearly 18,000 individuals and 560 corporate members. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.