2015: The Year of Remote Sales Tax Legislation?
- Dec 11, 2014 | Gail Cole
The Marketplace Fairness Act is dead. Long live the Remote Transactions Parity Act.
2014 is just about over and there is no new federal internet sales tax law. The Marketplace Fairness Act, which the Senate passed in May 2013 and the House tucked into a dark corner, is effectively dead.
But the issue of remote sales tax is very much alive. At this very moment, lawmakers in Michigan could be hammering out the details of a new state law pertaining to online sales tax. The United States Supreme Court could be debating Colorado’s use tax notification requirement. Proponents from California to Massachusetts are renewing strategies for 2015. No, internet sales tax will not simply vanish when the clock strikes twelve on December 31.
Representative Jason Chaffetz (R-UT), who was tasked with reshaping online sales tax legislation early last spring, knows this. According to Tax Analysts, he is working on the Remote Transactions Parity Act. Similar to the Marketplace Fairness Act, it would grant states the right to impose a sales tax obligation on remote sellers. Details will be forthcoming once House Speaker John Boehner (R-OH) gives the say-so.
As the cycle continues, businesses should prepare for any eventuality. Automated sales tax software as a service (SaaS) facilitates sales tax compliance in all states. Learn more.