Law360 – States Should Think Twice About Acting On Wayfair Windfall

Law360 – States Should Think Twice About Acting On Wayfair Windfall

“To call Wayfair a ‘windfall’ is a double insult to state taxpayers,” said Steve DelBianco, president and CEO of NetChoice, a trade group that represents e-commerce businesses and online consumers. “First, every tax dollar comes from state taxpayer pockets, so there is no windfall of new money coming into the state.”

Second, DelBianco points to a GAO estimate that said new tax revenue from remote sellers would amount to less than 1 percent of total state and local tax revenue.

“So this windfall isn’t going to refill a state’s coffers,” DelBianco said.

Small Business Advocate – Steve DelBianco Joins Jim Blasingame to Discuss the Wayfair ruling, the Techlash, and the “Tech Paradox”

Small Business Advocate – Steve DelBianco Joins Jim Blasingame to Discuss the Wayfair ruling, the Techlash, and the “Tech Paradox”

 

The Techlash Segment

Steve DelBianco joins Jim Blasingame to report on the negative press the large tech companies are receiving, and to try to reveal some of their counter balancing benefits.

 

Steve DelBianco joins Jim Blasingame to reveal that for every advantage and benefit we get from technological innovations, also likely comes a paradoxical element that is less attractive, like getting free stuff on the Internet.

 

Wayfair Ruling Segment

Steve DelBianco joins Jim Blasingame to continue his reporting on how small businesses are being impacted by the Supreme Court ruling permitting every state and local government to require small businesses to remit sales tax for online sales.

Brookeville Times – US Top Court Lets States Force Online Retailers to Collect Sales Tax

Brookeville Times – US Top Court Lets States Force Online Retailers to Collect Sales Tax

On the other hand, small internet businesses will lose out because of the increased compliance costs, said Chris Cox, a lawyer for e-commerce industry group NetChoice.

Bloomberg BNA – State Tax Bogeyman Real or Overhyped After Online Tax Ruling?

Bloomberg BNA – State Tax Bogeyman Real or Overhyped After Online Tax Ruling?

Alongside retroactivity, e-retailers and trade association representing e-commerce, such as Washington-based NetChoice have openly decried Oct. 1 start dates for sales tax collections. Currently, nine states have announced an Oct. 1 implementation date for their South Dakota-esque online tax regimes.

Avalara – Call for Sales Tax Simplification

Avalara – Call for Sales Tax Simplification

The ecommerce association NetChoice wants sales tax compliance for businesses to be simpler. As a founding member of the coalition for True Simplification of Taxation (TruST), this hardly comes as a surprise. But its calls for simplification have grown louder since the Supreme Court of the United States ruled that states can require out-of-state businesses to collect and remit sales tax. Prior to the court’s ruling in South Dakota v. Wayfair, Inc., a state could impose a tax collection obligation only on businesses with a physical presence in the state.

On July 24, the House Judiciary Committee met to discuss the ramifications of the Wayfair decision. NetChoice was not among the witnesses. Nonetheless, the organization’s president Steve DelBianco submitted an 11-page statement to the hearing’s written record. It suggests Congress “use its constitutional authority to protect interstate commerce by restoring the physical presence rule.”

Should Congress allow the taxation of remote sales to persist, NetChoice asks Congress to allow states to impose sales tax on remote businesses — “but only if states adopt minimum simplifications stipulated by Congress.”

Bloomberg BNA – New Digital Tax Bill in Wings at Congress: State Official

Bloomberg BNA – New Digital Tax Bill in Wings at Congress: State Official

State and industry groups like NetChoice Inc. held a roundtable July 26 at the MTC’s annual meeting in Boston, and MTC executive director Greg Matson said that later this week that the commission, the Federation of Tax Administrators, and the Streamlined Sales and Use Tax Governing Board Inc. would have a forward-looking discussion with the National Governors Association and the NCSL.

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

Route Fifty – A Taxing Issue for State Legislators

Route Fifty – A Taxing Issue for State Legislators (NetChoice Op-ed)

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.

 

Bloomberg BNA – State of Wayfair: Tax Groups to Hold Huddle on High Court Ruling

Bloomberg BNA – State of Wayfair: Tax Groups to Hold Huddle on High Court Ruling

The states groups and those representing online sellers like NetChoice, Inc. are pushing to clarify the U.S. Supreme Court’s ruling in South Dakota v. Wayfair—which tossed out Quill Corp. v. North Dakota, the court’s 1992 physical presence threshold for when states could tax remote sales. States are expected to become even more active in taxing online sales after the ruling, and retail groups have been urging states and conformity-focused groups like the MTC to consider simplifying their schemes and approaching implementation cautiously.

The MTC will also be considering simplification measures suggested by Isaacson; Steve DelBianco, president and CEO of NetChoice, a Washington-based trade association representing e-commerce businesses and online consumers; and Hamilton Davison, president and executive director of the American Catalog Mailers Association (ACMA) in Providence, R.I.

Brookville Times – US court backs states over web sales tax

Brookville Times – US court backs states over web sales tax

But NetChoice, a trade association for e-commerce firms, warned small businesses would have trouble complying with the different tax requirements in each state.

The group described the decision as a “body blow” to customers and small online businesses.

“Consumers will quickly feel the negative effects as those businesses dry up or are forced into the arms of Internet giants,” said Chris Cox, NetChoice outside counsel.