Today, catalogs, websites, and retail stores play by the same rules when it comes to sales taxes.
They all collect and pay sales tax for every state where they have a business location. But some argue that there should be special rules for remote sellers.
But, some in Congress want to: impose new tax burdens on online and catalog businesses, make your online and catalog purchases more expensive, and make it easier to tax collectors to reach beyond their borders to begin taxing other states' main street stores.
The True Simplification of Taxation (TruST) Coalition represents American businesses in the fight to keep interstate commerce and competition free from unfair tax burdens imposed by states where our businesses have no operations or representation.
Today, catalogs, websites, and retail stores all play by the same rules when it comes to sales taxes:
For decades, state tax authorities have tried to force out-of-state businesses to pay collect sales tax, too. But the US Supreme Court found that state tax systems are far too complex, with thousands of rates and differing rules and definitions. The Quill decision, as it’s known, holds that states can impose sales tax only on businesses with a physical presence in the state.
The Supreme Court cited Constitutional protections for interstate commerce
But now Congress is considering legislation to remove the protections in Quill and force all businesses to file and remit sales tax to states where these businesses have no operations or representation. For America’s catalog and online retailers, this would create new taxes, since states hold the retailer liable for the tax—whether or not it’s collected from customers at the time of sale.
The legislation would require all e-commerce websites and catalogs to:
• calculate tax rates for over 9,600 tax jurisdictions, each with its own rates and sales tax holidays;
• file returns for each of the 46 taxing states;
• endure potential tax audits from 46 state tax authorities; and
• invest in computer systems changes and additional accounting resources.
Our coalition is working to convince Congress to uphold its Constitutional duty to protect interstate commerce and competition
If Congress is seriously considering removing the Quill protections, we are advocating a set of true simplification rules and fair procedures to hold states accountable.