Equal Collection bill introduced in Senate: Amazon supports it
A bill is being introduced by a bipartisan group of Senators to establish a Federal policy that will allow states to compel internet retailers to collect sales tax for sales into their states.
Amazon put out this
expressing their strong support for the bill.
I’ve written quite a bit about Amazon and sales tax before.
Amazon is supporting a Federal policy on sales tax.
Now, I have to be very careful to say this clearly, although I’m thinking most of my readers know it.
This is not a policy for a Federal sales tax. It would not mean that people owe a new tax.
It has to do with having internet retailers making sales into a state collecting the sales tax (just as a brick and mortar store does) and submitting it to the state.
It might seem odd that Amazon would support something that would mean that the total people see when they buy taxable items from Amazon would be higher.
I think they see that as inevitable…what they don’t want is to have to fight fifty different states about whether they have to do it or not, and how.
The bill seems relatively simple and clear. You can read it here (it won’t take long):
Here are a couple of interesting sections:
Each Member State under the Streamlined Sales 8 and Use Tax Agreement is authorized to require all sellers 9 not qualifying for a small seller exception to collect and 10 remit sales and use taxes with respect to remote sales 11 sourced to that Member State pursuant to the provisions 12 of the Streamlined Sales and Use Tax Agreement. === (c) SMALL SELLER EXCEPTION.—A State shall be 16 authorized to require a remote seller, or a single or con- 17 solidated provider acting on behalf of a remote seller, to 18 collect sales or use tax under this Act if the remote seller 19 has gross annual receipts in total remote sales in the 20 United States in the preceding calendar year exceeding 21 $500,000 === (d) NO NEW TAXES.—Nothing in this Act shall be 8 construed as encouraging a State to impose sales and use 9 taxes on any goods or services not subject to taxation prior 10 to the date of the enactment of this Act.
Is the bill going to pass?
Is any bill going to pass?🙂
I’ve talked about this a lot already, so I’ll let the comments argue the sides.
I’ll say this…if you want to contact your Senator pro or con, you can do that here:
This post by Bufo Calvin originally appeared in the I Love My Kindle blog.