Sales Tax Initiative

ABA CEO Oren Teicher urged the Massachusetts Department of Revenue to require Amazon.com to collect and remit sales tax on orders made by Massachusetts residents. Teicher’s letter was prompted by news that Amazon.com is opening an office in Cambridge. 

A U.S. District Court struck down as unconstitutional a sales tax fairness law in Colorado that required out-of-state retailers to either collect and remit sales tax for purchases made by Colorado residents or inform their Colorado customers that they owe use tax on any purchase they have made.

On Wednesday, April 4, Utah Gov. Gary Herbert signed into law a bill that requires remote retailers with nexus in Utah via distribution centers or subsidiaries to collect and remit sales tax for purchases made by state residents.

Last week, Betsy Burton, the co-owner of  The King’s English Bookshop and an ABA Board member, spoke in support of sales tax fairness at the International Council of Shopping Center’s Strategic Leadership Summit and the American Independent Business Alliance 2012 Conference.

The campaign for sales tax fairness continued to heat up this week, with legislative activity in Iowa and Louisiana.

Here’s a roundup of recent developments on the sales tax fairness front in Connecticut, Georgia, Kansas, Maine, Minnesota, Missouri, and New Jersey, as well as a report on ABA’s recent meetings with the staff of key legislators in support of a federal solution.

The sales tax equity fight continues in Arizona, despite recent legislative setbacks in the state Senate.

At press time, the New Jersey Senate Budget Committee was scheduled to hold a hearing on S. 1762, legislation that would provide Amazon.com a temporary sales tax exemption in exchange for the retailer’s opening two warehouses in the state.

The Arizona state Senate is voting today on SB 1338, legislation that would clarify sales tax laws in the state by requiring any company with a warehouse or distribution center in Arizona to collect and remit sales tax. Meanwhile, in Utah the state Senate overwhelmingly passed similar legislation.

On Thursday, March 1, the Utah House of Representatives passed H.B. 384, legislation that would require remote retailers with nexus in Utah via distribution centers or subsidiaries to collect and remit sales tax.