[Congressional Record Volume 169, Number 176 (Wednesday, October 25, 2023)]
[Extensions of Remarks]
[Page E1014]
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, October 25, 2023

  Ms. NORTON. Mr. Speaker, today, I 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, are subject to a sales tax if sold on private property. 
Customers are often unaware of the exemption from a 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 on 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 and the John F. Kennedy Center for the 
Performing Arts.
  I strongly urge my colleagues to support this bill.

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