The petition, started by Rachel Kibbe, CEO and founder of ACT, aims to reform the current US tax system that applies sales tax to used items, including thrifted apparel, handbags, accessories and footwear. The petition also covers repairs and alterations.
The campaign, supported by ACT fashion resale members including ThredUp, Vestiaire Collective, Fashionphile and Unspun, highlights a significant challenge in the second-hand market: consumers are effectively paying sales tax twice on the same item – once during the initial purchase and again when bought second-hand.
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“This double taxation is an unfair double-dip into shoppers’ pocketbooks,” says the petition website.
The coalition is leveraging this petition to send a message to lawmakers, calling for changes in tax policy to support a more sustainable future in the fashion industry.
ACT argues that this practice unfairly burdens both consumers and businesses that are driving the shift towards sustainable fashion.
Key points of the petition include:
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By GlobalData- The current tax system is seen as working against second-hand shopping, a growing sector chosen by millions for its economic and environmental benefits,
- Ending double taxation could lead to cost savings for consumers and support American businesses in the circular economy,
- The petition aims to make second-hand clothing and repair more financially accessible, potentially fostering a culture of reuse and recycling,
- ACT cites that 85% of discarded textiles end up in landfills, with 17m tonnes of textile waste accumulating across the US.
In July, ACT submitted a letter to the US Trade Representative endorsing The Americas Trade and Investment Act (The ‘Americas Act’) as a pivotal initiative for economic prosperity across the Western Hemisphere.
