NetChoice in the News

INTA Members Bulletin - INTA Members Advocate for Trademarks at ICANN 62

The highlight of the day was the closing panel, which addressed the topic titled “Should the U.S. Opt In to Europe’s Privacy Regime?” moderated by Steve DelBianco, President of NetChoice, a trade association of e-commerce businesses and online consumers, all of whom share the goal of promoting convenience, choice, and commerce on the Internet. The debate featured many of the questions that INTA members face as they find ways to increase their brand value and customer experience across a variety of media.

The Daily Caller - Removing Alex Jones from Social Media Isn't About the First Amendment

Content moderation can be controversial, as demonstrated earlier this week when leading online platforms removed content and accounts posted by Alex Jones and his media property “Infowars.”

Many conservatives contend that the removal of Alex Jones’s content violated his freedom of speech. Ironically, these are often the same people that argue private businesses should be able to operate the way they want.

Private entities, including online platforms, are not bound by the first amendment, which applies only to action by the government. Private actors are bound by corporate policies and market forces.

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?

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

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

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.

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

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

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

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.

Multi Channel Merchant - Merchant, State Groups Look to Come to Terms in Wake of Wayfair Decision

Representatives from the American Catalog Mailers Association (ACMA), NetChoice – representing ecommerce sellers – and the Multistate Tax Commission (MTC) met in Boston on July 25 at MTC’s annual meeting to begin a dialog about a way forward that ensures an equitable, fair and efficient process for out-of-state tax imposition and collection.

Bloomberg BNA - Oct. 1 Online Sales Tax Deadline Unrealistic: E-Commerce Rep

States enforcing new deadlines of July 1 and even Oct. 1 in the wake of a decision involving Wayfair, Inc. will “drive a groundswell of demand to go get a moratorium” from Congress, Steve DelBianco, president and CEO of NetChoice, a Washington-based trade association representing e-commerce businesses and online consumers, said July 26.

Isaacson, who represented Wayfair in the U.S. Supreme Court case, said he was speaking as counsel for the ACMA and Netchoice, among several groups that have been involved in much of states’ litigation against online sales tax regimes. He presented a list of 20 “suggested simplification measures” for states to take as they move forward.

Bloomberg BNA - Retail Advocates to Talk Digital Tax Future With Multistate Group

Issacson, who also represented the Data & Marketing Association in earlier cases about state online sales tax schemes that ended up before the U.S. high court, said he will be joined by the presidents of the American Catalog Mailers Association and NetChoice at a session on the agenda of the MTC Executive Committee during its July 26 meeting in Boston.

NetChoice, an industry association for e-commerce, has been at the heart of many of the lawsuits designed to stop states’ online sales taxation efforts. And the group is pushing Congress to act to limit states’ authority, which it joined others in doing at a July 24 House Judiciary Committee hearing on the post- Wayfair landscape.

The Drive - Major Rental Car Companies Want Car Sharing Services to Be Equally Regulated

“Turo hosts have an economic disadvantage compared to giant rental car companies. NetChoice estimates that rental companies avoid paying $3.2 billion annually in state sales taxes, while Turo estimates that [its] hosts have paid over $450 million in state sales taxes when they purchased their personal vehicles,” Michelle Peacock, VP and Head of Government Relations at Turo told The Drive.

Bloomberg BNA - Wait, Wait: Congress Eyes State Digital Taxes, Wayfair Mulls Settlement (2)

Bloomberg BNA – Wait, Wait: Congress Eyes State Digital Taxes, Wayfair Mulls Settlement (2)

It’s unclear which of those will be on the table at the Judiciary Committee hearing, but “the committee is tuning-in to the growing chorus of state tax collectors demanding back taxes, interest, and penalties,” Steve DelBianco, president and CEO of NetChoice Inc., told Bloomberg Tax. “There’s enough noise here for Congress to step in and say, stop the music.”

DelBianco said in a statement late July 23 that “because of Wayfair, businesses have no clear test to determine whether they are obligated to pay a foreign state’s sales tax.

“The Commerce Clause is just as necessary now as when the constitution was written, and Congress must protect interstate commerce in the digital age,” DelBianco continued. “The time to act is now, and the longer Congress leaves the state tax playpen unsupervised, the worse the mess will be for American small businesses and consumers.”

He said the U.S. Supreme Court in Wayfair “misunderstood the true audit liability faced by America’s small businesses and there’s no guarantee that tax software services will be paid for by the states.”

Politico - Morning Tech

Google didn’t respond to a request for comment on Trump’s comment, and three trade groups representing the tech giant — the Information Technology Industry Council, the Internet Association and NetChoice — had no comment.

Chicago Business - Your neighbor isn't a business

There are benefits to being a traditional car-rental company that platforms like Turo don’t have. Traditional car-rental companies get all of what they charge for renting a vehicle. On Turo, the bulk of the money goes to the car owner and the platform only gets a small portion of the fee. Traditional car-rental companies get millions in tax subsidies, grants and federal bailouts. Individual car owners don’t. In fact, NetChoice estimates that rental companies avoid paying $3.2 billion annually in state sales taxes, while Turo estimates that its hosts have paid over $455 million in state sales taxes when they purchased their personal vehicles.

Bloomberg BNA - House Judiciary Schedules Hearing on State Online Sales Taxes

It’s unclear which of those will be on the table at the Judiciary hearing, but “the committee is tuning-in to the growing chorus of state tax collectors demanding back taxes, interest, and penalties,” Steve DelBianco, president and CEO of NetChoice Inc., told Bloomberg Tax. “There’s enough noise here for Congress to step in and say, stop the music.”

NetChoice, an industry association for e-commerce, has been at the heart of many of the lawsuits designed to stop states’ online sales taxation efforts.

The Daily Caller - Maybe Brett Kavanaugh Can Save Conservative Supreme Court Justices From Their Judicial Activism

Judge Brett Kavanaugh’s consideration for the bench could pull Supreme Court’s conservatives back from their recent lurch into judicial activism. Nowhere else was this judicial activism by Conservative judges more apparent than in last month’s 5-4 Supreme Court decision in South Dakota v. Wayfair.

This decision exposed countless small businesses to tax collectors from 46 states. In doing so, the court struck down a key Supreme Court precedent that required a business to be physically present in a state before it can be forced to collect tax there.

Unfortunately, the bad news doesn’t stop there.

Read more at the Daily Caller

Bloomberg Tax - House Judiciary to Hold Hearing on State Online Sales Taxes

It’s unclear which of those will be on the table at the Judiciary hearing, but “the committee is tuning-in to the growing chorus of state tax collectors demanding back taxes, interest, and penalties,” Steve DelBianco, president and CEO of NetChoice Inc., told Bloomberg Tax. “There’s enough noise here for Congress to step in and say, stop the music.”

NetChoice, an industry association for e-commerce, has been at the heart of many of the lawsuits designed to stop states’ online sales taxation efforts.

KenThink - US Supreme Court Sales Tax decision hurts small online businesses

Chris Cox, a lawyer for e-commerce industry group NetChoice, claimed that small businesses would be most affected: “Consumers will quickly feel the negative effects as those businesses dry up or are forced into the arms of Internet giants.”