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Communications, Financial Services and Interstate Commerce Committee

Action  Alert

National Conference of State Legislatures
Office of State- Federal Relations
May 29, 2007

Federal Legislation to Grant States Authority to Collect Taxes on Remote Sales Introduced in Congress

U.S. Senate Sponsors Needed!

NCSL Urges State Legislators to Contact Your United States Senators and Request Sponsorship and

Support of the Sales Tax Fairness and Simplification Act, S.34

The federal Sales Tax Fairness and Simplification Act, S. 34, was introduced by Senator Mike Enzi, Republican of Wyoming, on Tuesday, May 22^nd.  The federal legislation will grant to the states that have complied with the Streamlined Sales and Use Tax Agreement (Agreement) the authority to require remote sellers to collect sales and use taxes.   NCSL urges you to contact your United States Senators and request that they add their name to this important federal legislation.

The Streamlined Sales and Use Tax Agreement is a multistate effort, supported by the National Conference of State Legislatures (NCSL), the National Governor’s Association (NGA), and numerous businesses, to simplify and modernize state sales tax administration in an effort which would allow Congress to overturn the Bellas Hess and Quill Supreme Court decision.

To date, twenty-one states have simplified their sales tax law and over 1,000 volunteer sellers are collecting sales tax on remote sales. This voluntary effort has resulted in over $75 million in new revenues for state and local governments which previously would have gone uncollected. As has been stated by Congressmen Roy Blunt, House Minority Whip, Missouri, giving states collection authority is “true fiscal relief for the states that does not cost the federal treasury a single cent.”

The Sales Tax Fairness and Simplification Act (S. 34) is similar to legislation introduced during the 109^th Congress and includes a small business exception, which would exempt small retailers with gross-remote sales of less than $5.0 million annually for collecting sales tax. In addition, the bill includes a provision, not included in the 109^th Congress bill, that would allow tribal governments to participate if they fully comply with all the provisions of the Agreement

NCSL urges you to ask your United States Senators to sponsor S. 34, the Sales Tax Fairness and Simplification Act.  Please have their staff contact Randi Reid, Office of Senator Mike Enzi, at 202-224-3424 to arrange to co-sponsor the legislation.  The House version will be introduced after the Memorial Day recess by Congressmen William Delahunt, Democrat of Massachusetts.

For further information, please contact NCSL Washington staff: Neal Osten, 202-624-8660; neal.osten@ncsl.org;  Garner Girthoffer, 202-624-7753, garner.girthoffer@ncsl.org .