A Taxing Issue for State Legislators

This week, lawmakers from across the country convene in Los Angeles for the National Conference of State Legislatures, where they will hopefully attend to threats to America’s small businesses and consumers from an onslaught of new internet sales tax obligations.

Newly emboldened state tax collectors are aggressively imposing sales tax obligations on businesses with no physical presence within their borders. Online sellers must now absorb the costs of new systems and compliance—including liability for taxes on past purchases where no tax was due at the time of the sale.

Read More at Route Fifty

Maybe Brett Kavanaugh Can Save Conservative Supreme Court Justices From Their Judicial Activism

Judge Brett Kavanaugh’s consideration for the bench could pull Supreme Court’s conservatives back from their recent lurch into judicial activism. Nowhere else was this judicial activism by Conservative judges more apparent than in last month’s 5-4 Supreme Court decision in South Dakota v. Wayfair.

This decision exposed countless small businesses to tax collectors from 46 states. In doing so, the court struck down a key Supreme Court precedent that required a business to be physically present in a state before it can be forced to collect tax there.

Unfortunately, the bad news doesn’t stop there.

Read more at the Daily Caller

Don’t Assume the Supreme Court Will Open the Door For New Internet Taxes

State tax collectors are counting on a vote from Justice Thomas to put them over the top. Knowing that Justice Thomas isn’t a fan of the dormant commerce clause, one of the many issues at play in Wayfair, these tax-advocates are already counting his vote.

Too bad they haven’t looked back more than a couple of years. If they did see what Thomas, Kennedy, and Scalia all agreed in Quill, these tax advocates would realize that Thomas may not help them, and in fact, Kennedy might not either.

What is the RTPA, and why does NetChoice oppose it?

The internet has truly changed how we buy and sell products and services. Many businesses have no physical stores, yet consumers anywhere can find these businesses online. The impact of e-commerce has been truly revolutionary for buyers and sellers alike. At the same time, states have grown increasingly concerned about one aspect of e-commerce… Read more>

Small Business Radio - Debating the merits of not taxing Internet sales

Debating the merits of not taxing Internet sales

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Why Massachusetts bailed on remote sales tax collection

Act now on No Regulation Without Representation

Any business that goes online to find customers is finding themselves under siege by regulators and tax collectors from multiple states, despite Supreme Court rulings that limit states’ cross-border taxing powers.

READ MORE at The Hill

Retailers built too many stores and the bubble is bursting

Online retailers have become a convenient scapegoat for brick-and-mortar stores looking to cast blame for the rapid contraction in retail jobs in recent months.

It’s become a such a common refrain in reports about job losses in the retail industry that it has almost become gospel.

But upon closer inspection, it’s clear that retailers have only themselves to blame for the bubble they created—a bubble that is finally bursting.

READ MORE at DigitalCommerce

NPR All Things Considered - Massachusetts tries something new to claim taxes from online sales

Steve DelBianco is on the shameless-tax-grab side. He leads NetChoice, a national trade association representing e-commerce sites. He says under this strange Massachusetts theory, “your business is subject to the taxation [and] regulation in any state where a user simply enters their website address. That can’t hold up to legal scrutiny, because it certainly doesn’t hold up to common sense.”

DelBianco is not convinced a cookie on your computer is the same thing as a storefront in a strip mall. He’s willing to take that argument to court, and says his group is pursuing an injunction to block enforcement of the law before it goes into effect in July.

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WBUR – Mass. Will Collect Sales Taxes On Online Purchases July 1 (If There’s Not A Legal Fight First)

WBUR – Mass. Will Collect Sales Taxes On Online Purchases July 1 (If There’s Not A Legal Fight First)

Steve DelBianco is on the shameless side. He leads NetChoice, a national trade association representing e-commerce and online businesses.

“Massachusetts has this unique theory of electronic presence,” DelBianco said. “But under that theory, your business is subject to the taxation [and] regulation in any state where a user simply enters your website address. That can’t hold up to legal scrutiny, ’cause it certainly doesn’t hold up to common sense.”

For DelBianco, the only option left is a legal challenge to fight the idea that a cookie on your computer is the same thing as a storefront on Newbury Street. He said his group has sued a number of other states for online sales tax laws and he’s looking at a legal fight in Massachusetts too.

“We’re researching the legal arguments and raising the funds to pursue a lawsuit right now,” DelBianco said. He said it’s “too soon to say when we’ll be ready.”

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