National Internet Sales Tax Bill Introduced in House



A new bill that would require Internet companies collect sales tax was introduced in the House of Representatives Oct. 14.

A Senate bill, which uses a different mechanism, was introduced in August.

The Marketplace Equality Act has bipartisan support, being sponsored by Reps. Steve Womack (R-Ark.) and Jackie Speier (D-Calif.).

Like the Senate bill, which has won unexpected support from Amazon.com, the House legislation also has a “small seller exception,” exempting out-of-state vendors that have annual gross receipts less than $100,000 in-state or $1 million nationally.

The bill calls for state to enact a “simplified” system for revenue collection, with a single statewide rate, as well as a single revenue authority.   

“The intent of this legislation is not to be instructive, but instead to close a long-standing loophole that puts America’s brick and mortar businesses at a competitive disadvantage,” Womack said in a statement. “The nation’s retailers—both big and small—deserve to compete on a level playing field.”

Laws requiring Internet companies collect sales tax are now on the books in ArkansasConnecticutIllinois, California, Rhode Island, New York, and North Carolina. Laws requiring companies to notify consumers they owe taxes are in place in South Carolina and Colorado.

On June 21, JA relaunched its campaign in support of sales tax fairness. The organization said it “supports” the new bill, and it shows that “the message is getting through…that the playing field needs to be leveled.” It also updated its Legislative Alert.