Virginia Passes Broadband Bill
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The Regulatory Mix Today: Virginia Passes Broadband Bill, US Congress Online Sales Tax Legislation
US Congress Online Sales Tax Legislation
Congressman Jim Sensenbrenner (WI-05), Congresswoman Anna Eshoo (CA-14), Congressman Jeff Duncan (SC-03), Congresswoman Zoe Lofgren (CA-19), and Congresswoman Ann Kuster (NH-02) announced the introduction of the Online Sales Simplicity and Small Business Relief Act. This bipartisan legislation would ensure that states cannot require remote online sellers to collect sales tax retroactively on transactions made before January 1, 2019. It would also relieve small online businesses from sales tax collection obligations on transactions made in another state.
The law is a response to a June 2018, Supreme Court ruling that overturned decades of precedent regarding online and interstate sales tax collection requirements and said that states could collect sales taxes from remote sellers. The bill would ban retroactive tax collection requirements and creates a small business exemption. Specifically, it would bar states from imposing sales tax collection duties on remote sellers for any sale that occurred prior to January 1, 2019. It would also exempt small business sellers who gross less than $10 million in annual sales from collection duties until states produce a compact, approved by Congress, to simplify collection to the point where no small business exemption is necessary.
Rep. Sensenbrenner: “I’ve heard from online sellers in Wisconsin and across the country who are concerned with the complexity of the post-Wayfair tax regime. Small business owners, in particular, have shared fears that they will be unable to bear the new compliance burdens and may have to shutter their businesses. I’m proud to introduce this bipartisan legislation to provide clarity and certainty to all online sellers as well as relief to the small businesses that need it the most.”
Rep. Eshoo: “Small businesses are the backbone of our economy, which is why Congress must do everything it can to ease the cost of complying with new online sales tax laws. This bipartisan bill protects small businesses from the complicated and burdensome patchwork of state and local tax laws resulting from last year’s Wayfair Supreme Court decision.”
Rep. Duncan: “As a small business owner and former auctioneer, I understand the threat posed by the complications and uncertainty from the Wayfair Supreme Court case. The results of the case would be detrimental to small businesses around the country, and I’m proud to be a part of this bipartisan solution to provide relief.”
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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.
