Online Sales Tax Bills Reintroduced in Congress

Monday, May 8, 2017

Last week, the House and Senate introduced legislation allowing states to require out-of-state businesses--such as online retailers—to collect sales tax on purchase sold into their states. The bills are the latest attempt to bring parity between online sellers and retailers with physical locations.

Sens. Mike Enzi (R-WY) and Heidi Heitkamp (D-ND) introduced the Marketplace Fairness Act (S. 976) in the Senate, and Reps. Kristi Noem (R-SD) and John Conyers (D-MI) introduced the Remote Transactions Parity Act (H.R. 2193) in the House of Representatives. The only significant difference between the two bills is the smaller-seller exemption. In the Senate version it is for annual sales of less than a million. The House version classifies anyone with sales under $10 million a year as small.

NLBMDA has worked in recent years on sales tax parity between online sellers and retailers, such as lumberyards, with physical locations. The issue may have renewed interest as Congress considers reforming the tax code.

NLBMDA 5/8/2017

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