Bloomberg Law - Georgia Enacts Online Sales Tax Law Ahead of Supreme Court Action

“I think Georgia can fully expect a lawsuit before the law takes effect in January,” particularly if the Supreme Court upholds the physical presence rule and finds South Dakota’s law unconstitutional, said Steve DelBianco, president and CEO of NetChoice, an industry association for e-commerce.

NetChoice has sued Indiana, Tennessee, and Wyoming over similar sales tax collection laws.

Bloomberg Law - Iowa Governor Signals Support for Tax Reform Package

While S.F. 2417 was generally applauded by business groups, the e-commerce trade association NetChoice said the modifications to the sales and use tax regime would have dangerous impacts on the travel and technology sectors of the state economy. NetChoice also warned that provisions dealing with economic nexus could be quickly voided depending on the U.S. Supreme Court’s decision later this year in South Dakota v. Wayfair, a direct challenge to the court’s 1992 decision in Quill Corp. v. North Dakota.

Iowans will likely see this legislation as a tax increase,” said NetChoice President Steve DelBianco in a statement. “This bill attacks Iowa’s tech sector and travel agents, and its taxes will be passed on to Iowa residents. Legislators should not pass a bill that will come back to haunt them.”

BNA Bloomberg - Georgia Enacts Online Sales Tax Law Ahead of Supreme Court Action

“I think Georgia can fully expect a lawsuit before the law takes effect in January,” particularly if the Supreme Court upholds the physical presence rule and finds South Dakota’s law unconstitutional, said Steve DelBianco, president and CEO of NetChoice, an industry association for e-commerce.

NetChoice has sued Indiana, Tennessee, and Wyoming over similar sales tax collection laws.

Georgia also could face a legal challenge on the reporting requirements, DelBianco told Bloomberg Tax May 7, in addition to public opposition when residents of the state become aware of the privacy concerns of their online purchases being reported to the state.

The reporting requirements in Georgia’s law are modeled after a Colorado law that faced six years of court challenges before the Supreme Court declined to review the U.S. Court of Appeals for the Tenth Circuit’s decision to uphold Colorado’s law. No other federal circuit has ruled on such a reporting law, DelBianco said.

“Georgia is not in the Tenth Circuit. You can bet that it’s a ripe target,” he said.

READ MORE

WIBV TV - Online sellers await Supreme Court ruling on sales tax collection

Carl Szabo, vice president of Net Choice, an e-commerce trade association, says it cuts both ways.

For example, he says a smaller Main Street business that decides to go online and sell would be forced to comply immediately with thousands of tax jurisdictions.

“We’re trying to make sure that states can’t reach across their borders, and tax collectors in Boston can’t impose burdens on Buffalo businesses,” said Szabo.

NPR Illinois - Measure To Expand Online Sales Tax In Illinois Faces Hurdles

Steve DelBianco is president of NetChoice, a group representing e-commerce companies. He warned about what could happen to small businesses if the court overturns the current precedent, Quill Corp. v. North Dakota.

“If Quill were to fall, any Illinois business with a website would have to know the rates and rules in 12,000 jurisdictions across 46 states,” he said.

Digital Commerce 360 - The online sales tax debate has its day in the US Supreme Court

Steve DelBianco, executive director at e-commerce advocacy group NetChoice, agrees, noting that the justices asked questions about what happens if the tax software breaks, the costs for smaller businesses to collect for 46 states and if nearly all major e-commerce companies collect sales tax, hasn’t the problem already peaked.

“Tough questions asked by the justices today reveal that the court understands this is far more complicated than South Dakota has claimed,” DelBianco says. “Overturning Quill isn’t just flipping off a switch. It would cause national chaos.”

Axios - Supreme Court grapples with the online sales tax

A state-by-state sales tax system could force small sellers to rely on large online retail platforms like Amazon, Etsy and eBay who have the infrastructure to deal with the complexity, said Steve DelBianco, President and CEO of NetChoice, an e-commerce trade association.

Retail Dive - What's at stake in the e-commerce sales tax debate

“Think about the chaos that would ensue if in fact Quill were to disappear. It is not just 12,000 state and local jurisdictions. There’s also 550 Indian tribes who would assert any business anywhere in the country owes them sales tax for sales made to resident of that jurisdiction.” – Steve DelBianco, NetChoice, Executive Director

Norwalk Reflector - Supreme Court considers whether states should have power to tax all online sales

NetChoice, in a letter to Nebraska senators, cautioned that the bill would “violate the privacy expectations of Nebraska citizens … the state would know they are buying from vendors whose names reveal sensitive private information, such as medical conditions, financial problems, sexual preferences, and political beliefs.”

CNBC Opinion - The Supreme Court should not reverse internet sales tax law

Also in:

Top Breaking News

Op-ed by Steve DelBianco, President of NetChoice:

There’s no doubt that our current physical presence protection standard has enabled billions of dollars of economic growth. Time and again, Quill and the ITFA have stood up to legal and legislative challenges that threatened the digital economy.

The Supreme Court should recognize this on Tuesday, and leave our vibrant e-commerce ecosystem intact, while leaving it to Congress to make our nation’s laws.