NetChoice in the News

BNA Bloomberg - Tax Reporting Laws ‘Disappear’ if High Court Reverses

Some legislators in Colorado are also raising privacy concerns, vocalized by retail groups like NetChoice Inc., arguing consumers might not like it that information about their online purchases—including total amounts spent, shipping addresses and billing addresses—is forwarded to the state.

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International Lawyers Network - States’ online tax laws continue to prompt lawsuits

There is no end in sight for legal challenges to state government efforts to tax remote sales. The latest involves a lawsuit that Bloomberg made available online, filed by NetChoice and the American Catalog Mailers Association.

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BNA Bloomberg - Colorado Senate OKs Bill Nixing Reporting for Remote Sales

Under that change, the state would be “educating instead of penalizing consumers,” Amy Stephens, principal in the public policy and regulation practice at Dentons in Denver, told Bloomberg BNA April 17. Stephens is a lobbyist representing NetChoice, a prime advocate of the bill to remove the reporting requirement.

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Business Advocate -  States' online tax laws continue to prompt lawsuits

We addressed that case most recently last month, at which time we also noted that a NetChoice executive criticized Colorado’s sales tax notice and reporting requirements, which were challenged but ultimately upheld in Direct Marketing Association v. Brohl, as “tattle-tale.”

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BNA Bloomberg - States, Retailers Continue to Spar as Online Sales Grow

“You are going to unleash a crimson tide of federal legislation by overturning Quill,” Steve DelBianco, executive director of NetChoice, a coalition of e-commerce companies and trade groups, said. “Overturning Quill unleashes the states to pursue no simplification whatsoever and to send auditors to every corner of the country.”

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BNA Bloomberg - Online Sales Tax Rule Suspended in Tennessee

“In granting this injunction, the Tennessee court matched the reasoning in South Dakota’s court, holding that a bald-faced challenge to 150 years of federal doctrine cannot be enforced until lawsuits are concluded,” Steve DelBianco, executive director of NetChoice, told Bloomberg BNA in an email.

“State lawmakers and regulators might think they can flout the constitution and Supreme Court with impunity, but these court rulings provide a much-needed reality check,” he added.

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Law 360 - Tenn. Agrees To Suspend Out-Of-State Sales Tax Collection

Chancellor Russell T. Perkins on Monday granted the joint request to bar enforcement of Tennessee’s Rule 129 until final judgment on the challenge from the American Catalog Mailers Association and NetChoice, which represents online retailers like eBay, Overstock and PayPal.

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Carter Shelton - Call off the Dogs! Agreed Order in Tennessee Economic Nexus Case Prevents State From Enforcing New Regulation

Illinois Policy - Illinois General Assembly Proposes New Internet Privacy Protections

“Hiring attorneys to write privacy policies, coming up with terms of service – that will be a real burden for small businesses,” Carl Szabo, senior policy counsel at the tech trade group NetChoice, told The New York Times.

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Politico Tax – Avoiding the doom of a repeat

Politico Tax – Avoiding the doom of a repeat

TO CLARIFY: Morning Tax reported on Monday that one key opponent of federal online sales tax legislation believed that the National Conference of State Legislatures’ estimate that $26 billion worth of sales tax from remote sales weren’t collected was over the top, with a more feasible finding being at most $11.6 billion. But Steve DelBianco of NetChoice, who came up with that projection, believes a more likely figure is $5.2 billion. So in short: Supporters and opponents of allowing states more latitude to force out-of-state vendors to collect sales tax continue to have wildly different projections about how big the problem is.

Also of interest: The Colorado Senate Finance Committee holds a hearing today over a measure to repeal a law that forces out-of-state companies to inform the customers about sales taxes owed, a law that wound its way to the Supreme Court.

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Boston Business Journal – Retail group warns of lawsuits against Baker online sales tax

Boston Business Journal – Retail group warns of lawsuits against Baker online sales tax

The administration’s unique legal theory is “too clever by half,” Steve DelBianco, the executive director of the trade group NetChoice, said in an email Tuesday.

“The Supreme Court said that out-of-state sellers who mailed ‘an avalanche’ of catalogs into North Dakota could not be forced to pay the state’s sales tax,” he said of the 1992 decision. “So how in the world can Massachusetts deny that this ruling applies to e-retailers, who merely post a website that may be requested by Massachusetts consumers?”

DelBianco expressed hope that “state lawmakers will realize this DOR directive is headed in the wrong direction, by inviting lawsuits while bringing in no new tax revenue.” The administration has projected the tax will bring in $30 million a year in additional revenue.

The reference to litigation is likely no idle threat on the part of NetChoice. The organization has brought lawsuits in South Dakota and Tennessee against similar taxes implemented by those states in recent years. South Dakota was forced to file lawsuits against three major retailers, including Boston-based Wayfair, after they did not register with the state to collect sales taxes.

Asked if NetChoice was prepared to sue Massachusetts, DelBianco indicated that if that group did not, someone else could. “Too soon to say whether we would be the ones to sue Massachusetts,” he said. “We have lawsuits in progress already in South Dakota and Tennessee, and there are plenty of potential plaintiffs to go around.”

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BNA Bloomberg – Online Sales Rule Sparks Tennessee Lawsuit

BNA Bloomberg – Online Sales Rule Sparks Tennessee Lawsuit

NetChoice and the ACMA’s lawsuit against Tennessee’s rule asserts that it is “plainly unconstitutional” as it “violates the Quill physical presence requirement, usurps the role of Congress in regulating interstate commerce, and unlawfully expands the State’s taxing authority over companies, individuals, and organizations located throughout the United States, and potentially the world, based solely on their having customers in Tennessee.” The groups ask the court to bar enforcement of the rule.

Steve DelBianco, executive director of NetChoice, told Bloomberg BNA April 4 that the groups had to pursue an administrative challenge before filing the lawsuit.

DelBianco told Bloomberg BNA that “[f]urther economic nexus challenges are simply unnecessary now that this is headed to the highest court of the land, wasting taxpayer dollars while eroding respect for the legal system and, in fact, our entire system of government.”

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BNA Bloomberg – Remove ‘Tattletale’ Provision of Colorado’s Sales and Use Notice Law

BNA Bloomberg – Remove ‘Tattletale’ Provision of Colorado’s Sales and Use Notice Law

Carl Szabo, senior policy counsel with NetChoice, which is pushing the bill to repeal the reporting requirement, asked committee members whether the information to be gathered by the state “was worth the privacy costs.” The bill “creates a honeypot of privacy that could be left on a bus on a thumb-drive.”

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The Republic – Trade groups sue to block Tennessee online sales tax rule

The Republic – Trade groups sue to block Tennessee online sales tax rule

The lawsuit was filed in chancery court in Nashville by the American Catalog Mailers Association of America and NetChoice, a trade association of online retailers that includes eBay, Overstock.com and PayPal.

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WMCAction News – Trade groups sue to block Tennessee online sales tax rule

WMCAction News – Trade groups sue to block Tennessee online sales tax rule

The lawsuit has been filed by the American Catalog Mailers Association of America and the NetChoice trade association in chancery court in Nashville.

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Denver Business Journal – ‘Tattletale Bill’ would roll back parts of Colorado’s Amazon tax

Denver Business Journal – ‘Tattletale Bill’ would roll back parts of Colorado’s Amazon tax

Holbert and several others including Amy Stephens, the former Republican legislator who led opposition to the bill in 2010 — said the state should not be able to know if people are buying from sites that could raise eyebrows, such as gun-sales websites or sites for cross-dressers.

Stephens, who leads the Colorado government affairs practice at Dentons law firm, said she feared the law could have a “chilling effect on online shopping.”

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Morning Tax – Digging In

Morning Tax – Digging In

But opponents of online sales tax legislation have long said that those sorts of estimates far overstate the amount of sales taxes left on the table — and this time is no different, said Steve DelBianco of NetChoice. DelBianco came up with a far skinnier figure — at most $11.6 billion in uncollected sales, extrapolating from 2015 data that suggests around $23.2 billion in total sales taxes were due on online purchases, and one could conservatively assume that around half of that was collected.

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Music Law Updates – Ontario opens public consultation on ticket touting bots, but Virginia wants a free market

Music Law Updates – Ontario opens public consultation on ticket touting bots, but Virginia wants a free market

The Executive Director of US lobbying group NetChoice, which counts StubHub owner eBay as a member, Steve DelBianco wrote in a recent article for the Washington Post that: “Virginians deserve to have safe and easy ways to buy, sell and give away their sports and concert tickets. Yet, Ticketmaster is focused on requiring fans to purchase ‘credit card entry’ tickets which require fans to present the credit card used to buy the ticket plus a government-issued identification card for the person who bought the ticket”.

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Edge Media Network – Illinois Moves to Implement Internet Privacy Safeguards

Edge Media Network – Illinois Moves to Implement Internet Privacy Safeguards

Carl Szabo, senior policy counsel at the online business trade group NetChoice, testified at the House hearing that consumer privacy is already protected under laws such as Illinois’ 2008 Biometric Information Privacy Act and existing federal law requiring privacy policies.

“This is not a zero-sum game of privacy,” Szabo said.

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WKRN.com – Trade groups sue to block Tennessee online sales tax rule

WKRN.com – Trade groups sue to block Tennessee online sales tax rule

The lawsuit has been filed by the American Catalog Mailers Association of America and the NetChoice trade association in chancery court in Nashville.

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