District of Columbia Sales Tax and Remote Vendors
- Jun 22, 2012 | Susan McLain
The Act will next be reviewed by Congress. If approved, this legislation “…shall require every remote-vendor not qualifying as an exempted vendor to collect and remit to the District remote sales taxes on sales made via the internet to a purchaser in the District of Columbia….”
For the purpose of this bill, a "'Remote-vendor' means a seller, whether or not it has a physical presence or other nexus in the District selling via the Internet property or rendering a service to a purchaser in the District."
The Act provides that the following will be made available:
- “A registry, with privacy and confidentiality controls so that it cannot be used for any purpose other than the administration of remote sales taxes, where each remote vendor, not qualifying as an exempted vendor, shall be required to register;
- Appropriate protections for consumer privacy;
- A means for a remote-vendor to determine the current District sales and use tax rate and taxability;
- A formula and procedure that permits a remote-vendor to deduct reasonable compensation for expenses incurred in the administration, collection, and remittance of remote sales tax ….”
There is an allowance for a “…small-vendor exemption.” An "'Exempted-vendor' means a remote-vendor that has a specified level of cumulative gross receipts from Internet sales to purchasers in the District that exempt it form the requirement to collect remote sales taxes."
To read more details, go to http://www.dccouncil.washington.dc.us/budget/2013, select FY13 Budget Request Act and scroll to Section 219 in the Act. “This section may be cited as the ‘District of Columbia Main Street Tax Fairness Act of 2012’.”