New Hampshire Pushes Back Against Proposed Online Sales Tax Expansion

Both the House and Senate for the state of New Hampshire stand in allegiance against the proposed expansion of online sales tax.  The matter is set to be heard by the U.S. Supreme Court later this month.

Chris Sununu, Governor of New Hampshire, and state Attorney General Gordon MacDonald filed an amicus brief in response to the case of South Dakota v. Wayfair that will be heard on April 21st by the U.S. Supreme Court.  The New Hampshire Congress has also been unanimous in opposition to the proposed changes and has pleaded with the court to not force vendors in the tax-free Granite State to become tax collectors for other states in the country.

Groups that champion the cause of free market access like Freedom Works have also filed an amicus brief in support of Wayfair, an online merchant that is fighting against being required to collect sales tax in states where the company does not maintain a physical presence.  This is the standard that was established in the 1992 Quill decision.

It would seem that advocates fighting against online sales tax expansion have a tough fight ahead.  New Hampshire is one of only five states that do not require sales tax to be collected on retail sales.  Additionally, the state of South Dakota is prepared to make a passionate plea to the U.S. Supreme Court that their lawsuit is a necessity to protect the interests of "Main Street" business owners.

The argument made by South Dakota has found favor with President Donald Trump who has initiated his own political fight with the largest online retailer, Amazon, and Jeff Bezos.

The biggest challenge to New Hampshire and other entities not in favor of internet sales tax expansion is the fact that Supreme Court Justice Anthony Kennedy, who is considered to be the swing vote, and Justice Neil Gorsuch, the Court's newest member have both expressed views in the past that they are in favor of expanding state sales tax laws to include online purchases.