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On September 30, 2015 the U.S. House of Representative passed H.R. 719, which includes a provision that would extend the Internet Tax Freedom Act (ITFA) through December 11, 2015. The ITFA was scheduled to expire on October 1, 2015. The bill will now go to President Obama for signature.

 

To see our previous news item on the ITFA, visit Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced.

 

To see an update on this news item, visit Internet Tax Freedom Act Extended Through October 1, 2016,

 

(H.R. 719)

(10/26/2015)

On June 15, 2015, Representative Jason Chaffetz (R-UT) introduced the Remote Transactions Parity Act (RTPA) of 2015 in the U.S. House of Representatives. The bill – similar to the Marketplace Fairness Act (MFA) of 2015 – pertains to sales and use taxcollection obligations for remote sellers, but the RTPA contains some differences and several additional provisions. Unlike the MFA’s $1 million small seller exception, the RTPA’s small seller exception is as follows: first year: $10 million; second year: $5 million; third year: $1 million. The exception goes away in the fourth year. Furthermore, under the RTPA sellers utilizing an electronic marketplace are not considered small sellers and are not entitled to the exception, no matter the year. Under the RTPA, sellers would not be audited by states where they don’t have a physical presence. There would be a three year statute of limitations for assessments on remote sellers. The bill would enable remote sellers to refund over-collected tax to customers. The RTPA also specifies that a state would not be authorized to impose a sales and use tax collection requirement on remote sellers until it has certified multiple software providers that are certified in all states seeking to impose authorization requirements. The RTPA would also allow customers to pursue refunds of over-collected tax from remote sellers. However, RTPA does not preempt states from imposing sales and use taxes on remote sellers that do not have physical presence under this definition. It merely authorizes states to impose sales and use tax on remote sellers without a physical presence. Under the RTPA, if a seller has nexus under existing law, including Quill v. North Dakota, then the state may still impose a sales and use tax collection requirement.  The bill is assigned to the Judiciary Committee just like the MFA.  On July 1, 2015 it was referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law. (H.R. 2775, the Remote Transactions Parity Act of 2015)

 

UPDATE: This bill failed to pass during the 114th Congressional Session running from January 3, 2015 to January 3, 2017.  Therefore, this bill has died and would need to be reintroduced to be considered and voted on.

(09/08/2015)

Idaho homeowners who rent out their homes or rooms to the public for temporary lodging must collect Idaho sales tax and Idaho travel and convention tax on any stays of 30 days or less. This applies to individuals who list their homes on sites like AirBNB or VRBO. The sales tax and travel and convention tax apply to rentals of a vacation home, cabin, lodge, condominium, townhouse, room in a private residence, or any other structure.Note that some Idaho resort cities and auditorium districts may add a local tax in addition to the other taxes on sleeping accommodations and require a local tax permit to collect tax. Lodging providers can apply for permits to collect the state sales tax, travel and convention tax, and the Greater Boise Auditorium District tax by completing the online Idaho Business Registration application available through www.business.idaho.gov. They can also visit tax.idaho.gov to find a list of cities and auditorium districts that may also require a local tax permit. (News Release, Idaho State Tax Commission, August 12, 2015)

(08/25/2015)

A taxpayer who totaled his leased vehicle, exercised his option to purchase the vehicle for the residual value of $18,738, and then sold the damaged vehicle to a salvage yard for $5,580 was not entitled to a refund of Idaho sales tax paid on the difference between the purchase price and the salvage value of the vehicle. Idaho tax law specifies that if a lessee exercises an option to buy, the lessor must collect sales tax on the full remaining purchase price when the option is exercised. The second transaction – the sale of the damaged vehicle to the salvage yard – did not affect the taxability of the first transaction.Idaho tax law does not allow for a reduction in tax when the amount paid exceeds the value of the tangible personal property purchased.(Decision No. 26111, Idaho State Tax Commission, August 1, 2014, released December 2014)

(05/14/2015)

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015. Similar legislation – the Marketplace Fairness Act of 2013 – was previously introduced in February 2013 and passed by the Senate on May 6, 2013. That legislation failed to be enacted. If passed, the Marketplace Fairness Act of 2015 would authorize states meeting certain requirements to require remote sellers that do not meet a "small seller exception" to collect their state and local sales and use taxes. For more information on the previous legislation, visit Federal Government Introduces New Remote Seller Bill. (Marketplace Fairness Act of 2015, March 10, 2015)

 

UPDATE: This bill failed to pass during the 114th Congressional Session running from January 3, 2015 to January 3, 2017.  Therefore, this bill has died and would need to be reintroduced to be considered and voted on.

(03/16/2015)

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