In a letter from December 6th to all Members of Congress large conservative groups including Americans for Tax Reform, Americans for Prosperity, Heritage Action for America and FreedomWorks ask members of Congress to not address the issue of collecting internet sales taxes during this current lame duck session.  “The issue is contentious, and previous attempts to do so have raised important questions that have yet to be resolved.  Pushing through a bill in the lame duck would allow little time for debate or discussion of these complicated issues and we respectfully request that you refrain from doing so.”


Currently, the Supreme Court’s 1992 Quill decision establishes the framework for collecting such taxes.  Fundamentally, it requires nexus, or the seller’s physical presence within a state, before that state may collect a sales tax from the seller.  Yet, as e-commerce and internet sales have expanded, brick and mortar stores have been pressuring Congress to establish a new framework for collecting sales taxes from online out-of-state sellers.  Unfortunately, previous attempts to do so generated serious Constitutional questions about the scope and reach of state tax authorities, as well as concerns about the administrative burdens created by the new tax collection schemes.


Read the letter here


Photo Credit: 

Flickr: Misha Popovikj