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Utah Lawmakers Urge Federal Lawmakers to Act on Remote Sales Tax

  • Mar 23, 2015 | Gail Cole

 Utah lawmakers back Internet sales tax.

Utah lawmakers have remote sales tax on the mind.


Urging federal lawmakers to act

The Utah legislature has approved S.J.R 6, a Joint Resolution Urging Congress to Support Equity and Sales Tax Fairness. The resolution:

  • “Urges Congress to pass, without delay, federal legislation for the fair and constitutional collection of state and local sales and use taxes;
  • Urges that Congress consider the following principles and ideas when drafting the legislation:
    • Utilizing state-provided or state-certified tax collection and remittance software that is simple to implement and maintain 
    • Immunity from civil liability for retailers utilizing state-provided or state-certified software in tax collection and remittance;
    • Tax audit accountability to a single state tax audit authority;
    • Elimination of interstate tax complexity by streamlining taxable good categories;
    • Adoption of a meaningful small business exception so that small businesses that sell remotely are not adversely affected by the legislation; and
    • Fair compensation to the tax collecting retailer; and
  • Affirms that, through passage of the legislation, Congress will:
    • Foster consistent standards fir ub0state and remote sellers who are obligated to collect state and local sales and use taxes, providing equal, consistent and fair catalogue retailers, and Internet only based retailers; and
    • Require similarly situated purchasers to pay the same sales an duse tax rates, regardless of which type of retailer they make their purchases from and regardless of where that retailer is located.”

News from D.C.

Utah’s resolution is timely, for the Marketplace Fairness Act of 2015 (S 698) is now under consideration in the nation’s capital. Although substantially similar to the 2013 version that sought to allow states to impose a sales tax collection requirement on certain remote sellers, MFA 2015 would prohibit states from imposing collection and remitance requirements:

  • Before the date that is 1 year after the date of the enactment of this Act
  • During the period beginning October 1 and ending on December 31 of the first calendar year in which MFA is enacted.

On the home front

Closer to home, a bill relating to remote sales tax was introduced on March 12, 2015, the last day of Utah’s legislative session. It was filed in the House file for bills not passed, and may be considered next sessionHouse Bill 455 defines terms, makes technical changes, and “addresses the circumstances under which a person may be required to collect and remit sales and use taxes to the State Tax Commission.” Numerous Utah lawmakers have long been pushing for legislation that would impose a sales tax collection requirement on certain remote sellers.”

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.