A new petition led by American Circular Textiles is calling for an end to the taxation of secondhand apparel. Supported by resale platforms like ThredUp and Vestiaire Collective, the campaign aims to eliminate what it describes as “double taxation” on secondhand goods, including repairs and alterations.
American Circular Textiles, which is led by Circular Services Group, argues that taxing secondhand items both when they are first sold and again when they are resold makes them less appealing to consumers. This added cost, they say, discourages sustainable shopping and hampers the growth of the secondhand market and circular economy.
The secondhand apparel market is expanding rapidly. ThredUp’s recent resale report revealed that nearly half of US consumers’ clothing budgets are spent on secondhand items. Globally, the market grew 18 per cent last year, reaching a US $ 197 billion valuation.
The petition asserts that removing this tax would encourage garment reuse and repurposing, reducing the fashion industry’s environmental impact. It also suggests that the change would benefit lower-income individuals and families.
Alongside ThredUp and Vestiaire Collective, the coalition includes Fashionphile, Arrive Recommerce, Project Repat, Sortile, and Unspun. Rachel Kibbe, CEO and founder of American Circular Textiles, emphasized that ending double taxation would not only be fair but also drive economic growth and promote sustainable shopping practices.
