Federal legislation has been introduced intending to address the collection of sales and use taxes from consumers by out-of-state sellers for the states in which those consumers reside.
The Marketplace Fairness Act, introduced in the Senate as S. 336 and in the House as HR 684, reflects several states’ acceptance of the Streamlined Sales and Use Tax Agreement (SSUTA) in 2002. The SSUTA is essentially a multi-state agreement to simplify national sales tax laws by establishing a uniform system of administering and collecting sales tax on out-of-state retail transactions—these transactions alone add up to several trillion dollars. The SSUTA was approved in 2002 by a vote of representatives of 33 states and the District of Columbia. That number currently stands at 44 states.
Read more about the the Marketplace Fairness Act and the debate over the collection of sales and use taxes from consumers by out-of-state sellers in PPAI’s Washington Report. It is timely information that will help you become more aware and better prepared to advocate for your business, profession and industry.