[Congressional Record Volume 168, Number 50 (Monday, March 21, 2022)]
[Extensions of Remarks]
[Page E285]
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

                         Monday, March 21, 2022

  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 at gift shops on federal property. These governments 
would be able to generate millions of dollars in new tax revenue.
  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 and 
books, would be subject to sales tax if sold on private property. 
Customers are often unaware of the exemption from sales tax 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 state and local 
governments. In addition, state and local governments often provide 
uncompensated services for federal property, such as fire service, and 
allowing them to impose a sales tax at gift shops on federal property 
would allow them to recoup some of these costs.
  This bill is of particular importance to the District of Columbia, 
which 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.
  I strongly urge my colleagues to support this bill.

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