U.S. House Bill Would Limit State Authority for Remote Seller Sales Tax Collection

On September 6, 2018, Rep. Bob Gibbs of Ohio introduced H.R.6724, the Protecting Businesses from Burdensome Compliance Cost Act of 2018, in the U.S. House of Representatives. The objective of the bill is “to limit the authority of a State to require remote sellers to collect taxes and fees owed by purchasers then located in such State incident to their purchases of goods and services from such sellers, and for other purposes.” The bill provisions only apply if the seller does not have physical presence in the state. The bill requires a single rate per state that cannot exceed the highest combined rate in the state. There are also prohibitions on requirements related to notice and reporting provisions other than aggregate tax data by zip code. The bill would be effective January 1, 2019. It is unclear how this would impact states that have effective dates prior to January 1, 2019. The bill has been referred to the House Committee on the Judiciary. The bill’s full text is available and we will update this page once more information is available. (H.R.6724, proposed September 6, 2018)

Posted on September 12, 2018