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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Accounting Today - The future of online sales tax: What if they fail to kill Quill?

Steve DelBianco, executive director at NetChoice, said there are three scenarios in a “keep Quill” landscape:

  • States will claim that Quill doesn’t apply to specific taxes, such as Ohio’s commercial activity tax and Washington’s gross receipts tax. In November 2016, the Ohio Supreme Court declined to extend Quill to the state’s business privilege tax. A petition requesting the high court’s review is expected in April.
  • States will continue to enact legislation that aren’t “kill Quill” laws, but are “creative extensions of nexus” to “withstand the physical presence” rule — such as affiliate, click-through and marketplace provider regimes. While those regimes recognize physical presence as the rule, they define physical presence as including a relationship with an in-state entity that has physical presence.
  • States will pursue “tattletale reporting tactics,” such as the Colorado and Louisiana laws that mandate non-collecting remote vendors to report consumers’ purchases to the state.

“Goodlatte’s bill confirms the physical presence standard with specificity, and then goes on to open the door to a multistate compact that allows home state enforcement on remote sales,” DelBianco said, adding that “the beauty of the congressional approach, of either Sensenbrenner or Goodlatte, is they in fact would stop the madness of all these state bills.”

DelBianco noted that Amazon’s business model has led to its expansion into more states to provide faster fulfillment. Likewise, competition over customer service and rapid shipping will encourage other retailers to expand their physical footprint, thus triggering collection obligations in more locations.

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