Wednesday, June 14, 2017

Online retailers cheer new House sales tax bill

Image result for online sales taxMany states have been trying to force larger online retailers to collect sales tax, despite the prevailing federal law that only requires tax collection by retailers with a physical presence within their states. Some states have passed laws that expand what constitutes physical presence—or “nexus” in legal terms—to include receiving traffic from an affiliate in a state or dropping cookies on the browsers of state residents. However, a bill introduced in Congress would put a stop to those ploys.

Rep. James Sensenbrenner (R-Wisconsin) has introduced a bill that would explicitly prohibit states from creating new definitions of nexus that would require retailers to collect sales tax in states where they lack a physical presence, such as a store, office or warehouse.. . . more

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