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.”