December 21, 2005
State Lawmakers Praise Enzi for Sales Tax Fairness Efforts
WASHINGTON, D.C. - The National Conference of State Legislatures praised U.S. Senator Mike Enzi of Wyoming today for his sponsorship and introduction of a measure to provide states the ability to collect sales taxes on remote purchases.
"Senator Enzi's willingness to work with everyone involved in the sales tax simplification effort is to be commended," said Illinois Senator and NCSL President Steve Rauschenberger. "The legislation that was introduced today represents a collaborative effort that provides a workable solution to a very complex problem."
S. 2152, the Sales Tax Fairness and Simplification Act, as introduced by Senator Enzi, provides states that implement the Streamlined Sales and Use Tax Agreement with the authority to collect sales or use taxes from all remote sellers who do not qualify for a small business exception. This action will create a level playing field for all sellers, regardless of whether they are a brick and mortar retailer on Main Street or an online seller in another state.
Heretofore, states have been barred by two U.S. Supreme Court rulings from requiring retailers who do not have a physical presence in a state to collect sales taxes in that state. Current estimates show that states lost at least $8.9 billion just from electronic commerce sales during 2004 alone.
19 states representing more than 25 percent of the nation's population have signed on to the Streamlined Sales and Use Tax Agreement. The agreement is designed to provide a simplified and a more uniformed sales tax collection system for all retailers. In exchange for voluntarily collecting remote sales taxes, retailers would be compensated for the costs of collecting these taxes, granted amnesty for past failures to collect and released from liability resulting from sales tax collection calculation errors.
"State legislators are looking forward to working with Senator Enzi and his congressional counterparts to see that this important piece of legislation finds its way through the legislative process," said Senator Rauschenberger. "With the adoption of the Enzi legislation, Congress can provide fiscal relief for the states without costing the federal government a single penny."
NCSL is the bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
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