After Uber Tiff, Ohio Casting Broader E-Commerce Tax Net

Bloomberg Tax

Steve DelBianco, president and CEO of NetChoice, an e-commerce trade association, said the Senate proposal would almost certainly bring lawsuits from internet platforms, as well as possible congressional scrutiny over the issue of retroactivity. States have generally steered clear from retroactivity following the U.S. Supreme Court’s South Dakota v. Wayfairdecision, which dozens of states have used as the foundation to expand sales tax on out-of-state retailers—a move Ohio is also considering in the Senate budget bill.

Putting Together a State Budget

Rock The Truth

“A group representing some of the country’s biggest e-commerce companies, including eBay and Overstock.com, has sued the state in an effort to block a plan that requires online retailers to collect sales tax. The state’s new policy will take effect July 1, unless a judge grants NetChoice’s request for an injunction…..”

Eagle Tribune - State Eyes Bigger Net for Online Sales Tax

Eagle Tribune – State Eyes Bigger Net for Online Sales Tax

Steve DelBianco, president and CEO of NetChoice, a Washington D.C.-based trade group representing online retailers such as Overstock.com, eBay and PayPal, says Massachusetts and other states are attempting to squeeze more from retailers than the court’s decision allows by “cutting and pasting” South Dakota’s threshold for collecting sales taxes.

DelBianco said the $100,000 threshold set by the Supreme Court ruling was based on South Dakota’s economy and can’t be applied to wealthier states.

“Massachusetts has 10 times the gross domestic product as South Dakota,” he said.

“They ought to be increasing the threshold to follow the proportional size of the state. It should really be $1 million.”

He expects a lawsuit to challenge states that drop their thresholds to collect more revenue.

NetChoice testimony on California AB 147 – Taxation of Marketplace Facilitators

NetChoice testimony on California AB 147 – Taxation of Marketplace Facilitators

 

Chamber Business News – New legislation would end Arizona sales tax exemption for out-of-state online retailers

Chamber Business News – New legislation would end Arizona sales tax exemption for out-of-state online retailers

NetChoice, a national trade association of eCommerce businesses that promotes convenience, choice and commerce online, opposes H.B. 2702 in its present form. According to a NetChoice analysis, H.B. 2702 would discriminate against interstate commerce by requiring out-of-state business to pay the Transaction Privilege Tax (sales tax) of the location where Arizona purchasers reside, while in-state businesses could simply use the rates and rules applying to the physical business location regardless of where customers reside.

Testimony opposing California AB 147 – taxation of marketplace facilitators

Testimony opposing California AB 147 – taxation of marketplace facilitators

City and State NY - What would Cuomo’s internet sales tax do?

This time around, some opposition from the industry remains. “Governor Cuomo’s internet tax proposal shows that he misunderstands who will pay his new tax – any taxes collected by Internet businesses will come from the pockets of New Yorkers who already bear the highest tax burden in the nation,” Steve DelBianco, president of NetChoice, an eCommerce trade association, said in an email.

Testimony opposing Arizona HB 2702 – taxation of remote sellers and marketplace facilitators