Some of you may have seen the latest installment in my Sales Tax Handbook series. This most recent article focuses on three pending pieces of Federal legislation. They include the Mainstreet Fairness Act, the Marketplace Equity Act, and the Marketplace Fairness Act. Each has its own unique spin on states' most recent attempt to require out-of-state businesses to collect and remit sales tax on sales to in-state customers.
This legislation was initiated as a result of consumers shifting their buying pattern to online sales. However, this legislation could impact all businesses and not just those that sell through the internet.
Many businesses have sales in states where they currently do not have sales tax nexus. As a result, their requirement to collect and remit sales tax is non-existent. These three "Acts" could eliminate the physical presence standard that we are all used to applying to sales tax nexus. What would the Supreme Court have to say about this? Not too optimistic any of these Acts pass within the next year, but the debate seems to be reaching a crescendo. What are your thoughts?
Check out the Article from the Sales Tax Handbook.