More retailers found charging wrong Sandy Springs sales tax; experts see no easy fix

Reporter Newspaper

The problems have compounded in the era of online sales, which are taxed based on the customer’s delivery address, resulting in a complicated sales tax system whose flaws raise the ire of local governments and retailers alike. “If Home Depot is having trouble with sales tax complexities, imagine the troubles that small businesses are confronting all over the country,” says Steve DelBianco, president of NetChoice, a trade association of online and tech businesses.

Ohio Governor Vetoes Expanding Sales Tax to Internet Platforms

Bloomberg Tax

But expanding the sales tax to technology platforms, and making that tweak retroactive, was a large change that would have violated the Internet Tax Freedom Act, a federal law barring multiple or discriminatory taxes on e-commerce, Steve DelBianco, president and CEO of NetChoice, an e-commerce trade association, said.  “The legislators read the headlines and understood the dangers of imposing a retroactive sales tax on businesses around the country,” he said.

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…..”

Lower taxes work for Texas, why are lawmakers trying to create new ones?

Despite the histrionics of high-tax enthusiasts, new tax cuts are producing incredible revenue for state tax coffers. Texas alone has seen a 15 percent tax revenue increase this year. And Texas Comptroller Hegar expects an 8 percent growth in the state’s tax collections over the next two years — an extra $9 billion more to the state.

Read more at Medium

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.