Forbes – Massachusetts Sued Before New Internet Sales Tax Rules Take Effect
NetChoice and ACMA are challenging Directive 17-1 as “unconstitutional on its face.” Among other things, the plaintiffs allege that the regulation “imposes an obligation on certain Internet vendors to collect and remit sales or use tax on electronic commerce that are not imposed on other vendors who do or might make sales of similar goods and services through some other means.” Those other means may include catalog, mail order, television infomercial, and toll-free telephone call.
NetChoice Executive Director Steve DelBianco said, about the lawsuit, “The Massachusetts regulation blatantly violates Supreme Court precedent and the Internet Tax Freedom Act, a law Congress enacted specifically to stop states from imposing taxes that discriminate against the internet.”
DelBianco says, however, that “Massachusetts is taking the position that an out-of-state business is effectively setting up shop in the computers and smartphones of residents who enter the website address of that business. One wonders why the state didn’t say the same thing about businesses with telephone numbers that were dialed by Massachusetts consumers over the last 75 years.”