Sen. Wyden Introduces Resolution Opposing Federal Action on Online Sales Tax Collection Requirements

November 8, 2011

Senator Ron Wyden, with the support of a bipartisan group of Senators, has introduced a resolution which states that

[…] it is the sense of the Senate that Congress should not enact any legislation that would grant State governments the authority to impose any new burdensome or unfair tax collecting requirements on small Internet businesses and entrepreneurs, which would ultimately hurt the economy of, and consumers in, the United States.

This resolution comes in response to increasing pressure for Congress to authorize states to require out-of-state online retailers to collect and remit sales tax. One of the major arguments against requiring out-of-state online retailers to collect sales taxes, and one cited by the resolution, is that without massive simplification the current state and local sales tax system, which contains upwards of 9,600 different taxing jurisdictions, is too onerous for many smaller businesses to comply with.

For more on sales tax requirements for online retailers see:

Louisiana Considers Adopting “Amazon” Tax on Out-of-State Online Sellers, Fiscal Fact No. 271

“Amazon Tax” Laws Signal Business Unfriendliness And Will Worsen Short-Term Budget Problems, Special Report No. 176

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