[Congressional Record Volume 166, Number 208 (Wednesday, December 9, 2020)]
[Extensions of Remarks]
[Page E1119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCTION OF THE FEDERAL GIFT SHOP TAX ACT

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                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                      Wednesday, December 9, 2020

  Ms. NORTON. Madam Speaker, today, I rise to introduce the Federal 
Gift Shop Tax Act, which would allow state and local governments to 
impose a sales tax on purchases at gift shops on federal property. 
These governments would be able to generate millions of dollars in new 
revenue at a time when they are struggling to meet their budgets 
because of the economic crisis caused by the coronavirus pandemic.
  When the federal government engages in activity that is not 
inherently governmental, such as operating a gift shop, there is no 
reason to exempt customer purchases from a sales tax. The items sold at 
federal gift shops, such as jewelry, apparel, accessories, games, books 
and decor, would be subject to sales tax if sold on private property. 
Customers are often unaware of this sales tax exemption when shopping 
at gift shops on federal property, so the introduction of a sales tax 
is unlikely to have a significant impact on gift shop sales. It would, 
however, create a valuable revenue stream for struggling governments. 
In addition, state and local governments often provide uncompensated 
services to federal property, such as fire service, and allowing them 
to impose a sales tax on gift shops would allow them to recoup some of 
those costs. This bill is of particular importance to the District of 
Columbia, as it is home to a number of gift shops on federal property, 
such as at the Smithsonian Institution, the National Gallery of Art and 
the John F. Kennedy Center for the Performing Arts.
  State and local governments have taken the lead in combating the 
pandemic, meeting the moment with expanded services and support even as 
they lose significant revenue. This bill would give these governments 
an opportunity to make up a portion of their budget shortfalls by 
creating this new revenue stream.
  I strongly urge my colleagues to support this bill.

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