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Bill Proposed to Halt Internet Sales Taxation Under Wayfair Ruling


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9/18/2018
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Bill Proposed to Halt Internet Sales Taxation Under Wayfair Ruling

A group of bi-partisan legislators led by Jim Sensenbrenner (R-WI) proposed the Online Sales Simplicity and Small Business Relief Act (H.R. 6824) to limit the impact of the Wayfair decision.  The bill would prevent states from imposing sales tax collections before Jan. 1st and would also bar retroactive application.

“This bipartisan legislation reins in the taxation free-for-all created by the Supreme Court’s ruling in Wayfair. Online sellers need clarity and stability in the sales tax arena. Our bill will protect small businesses and Internet entrepreneurs from excessive regulatory burdens,” Sensenbrenner said in a statement.

The National Conference of State Legislatures (“NCSL”) supports the Wayfair decision and opposes Sensenbrenner’s efforts to obstruct the State’s ability to collect much needed revenue.  “For 26 years states petitioned Congress to address the remote sales tax issue and it did nothing. Now Congressman Sensenbrenner rushes legislation to tie states’ hands in implementing the Wayfair decision,” NCSL said in a statement.

This is not Sensenbrenner’s first push to spur Congress to act on internet sales.  On June 12, 2017, he introduced the “No Regulation Without Representation Act of 2017” (H.R. 2887).  That bill seeks to limit the ability of a state to pass laws affecting out-of-state or remote businesses.

“Over-taxation and regulatory burdens weigh heavy on American businesses,” Sensenbrenner said in the release. “These practices prohibit economic growth, stunt hiring, and make it harder for businesses to expand. The No Regulation Without Representation Act of 2017 helps alleviate these burdens, promotes entrepreneurial endeavors, and is an ally of small business. It reduces overregulation, keeps government overreaches in check, and ensures that only businesses within a state are subjected to state tax obligations.”

Prior to that, Sensenbrenner filed a bill (H.R. 5893) in July 2016, proposing to codify the U.S. Supreme Court’s 1992 decision in Quill Corp. v. North Dakota, and to impose the “physical presence test” legislatively to occupy the field and limit state sales tax nexus.

https://www.reuters.com/article/us-usa-internet-taxation/bill-would-put-brakes-on-u-s-states-rush-to-tax-internet-sales-idUSKCN1LU2RT

https://www.atr.org/americans-tax-reform-supports-online-sales-simplicity-and-small-business-relief-act

https://www.bna.com/bill-reintroduced-congress-n73014453278/



Category: Tax Law


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