New bill would give small businesses a $10 million exemption from online sales tax collection

By Stephen Frothingham

WASHINGTON (BRAIN) — A new bi-partisan bill introduced in the U.S. House would create a federal framework for collecting state sales taxes on online sales, as required by the U.S. Supreme Court’s Wayfair decision in June.

Among other things, the bill includes an exemption for businesses that generate less than $10 million in annual U.S. e-commerce sales. It also would prohibit states from trying to collect retroactive sales taxes from sales prior to the June 21 decision. It also prevents states from imposing sales tax collection duties before Jan. 1, 2019

The legislation is called the Online Sales Simplicity and Small Business Relief Act and was sponsored by Reps. Jim Sensenbrenner (R-Wis.), Anna Eshoo (D-Calif.), Jeff Duncan (R-S.C.) and Zoe Lofgren (D-Calif.).

The $10 million exemption would only apply until the states produce Congressionally-approved laws that would simplify sales tax collection to the point where the exemption would be unnecessary.

“This bipartisan legislation reins in the taxation free-for-all created by the Supreme Court’s ruling in Wayfair,” Sensenbrenner said in a statement. “Online sellers need clarity and stability in the sales tax arena. Our bill will protect small businesses and internet entrepreneurs from excessive regulatory burdens.”

The bill is the …read more

Via:: Bicycle Retailer and Industry News