Sales Tax Initiative

Virginia Gov. Bob McDonnell’s office announced this week that an agreement on sales tax fairness legislation had been reached with Amazon.com, members of the General Assembly, and key retailers. In Kansas, ABA Board member Sarah Bagby of Watermark Books & Café testified before a state Senate committee in support of sales tax fairness legislation.

Four New Jersey state lawmakers have introduced legislation that would provide online retailers with a sales tax exemption in exchange for a capital investment and the creation of full-time jobs in the state between January 1, 2012, and December 1, 2013.

On February 10, the Virginia Senate passed a sales tax fairness bill by a margin of 34-6. Senate Bill 597 would require retailers with warehouses or distribution centers in Virginia, such as Amazon.com, to collect and remit sales tax for purchases made by Virginia residents.

Amazon.com is promising New Jersey that it will open two warehouses in the state in exchange for a 22-month sales tax exemption even as it announced plans to open a $90 million, 1.2 million-square-foot warehouse in Delaware, a state that does not collect and remit sales tax.

ABA is urging members to meet with federal lawmakers at their district offices to express support for bipartisan sales tax fairness legislation currently under consideration in the House and Senate.

SB 1338, a bipartisan sales tax fairness bill introduced in late January, cleared Arizona’s Senate Commerce Committee on Wednesday, February 8. If the bill is enacted, Arizona could recapture more than 5,400 total jobs and stop future job losses, according to a recent study.

On Tuesday, February 7, the Virginia State Senate Finance Committee unanimously passed Senate Bill 597, legislation that would require retailers with warehouses or distribution centers in the state to collect and remit sales tax for purchases made by Virginia residents.

Arizona tells Amazon to pay up; Pennsylvania extends deadline for nexus compliance; Massachusetts governor urges Congress to support sales tax fairness; Maryland introduces sales tax fairness legislation

ABA is urging members to meet with their federal lawmakers in person in their local, district offices to express their support for bipartisan sales tax fairness legislation currently under consideration.

A Virginia state senator has introduced legislation aimed at closing the state’s sales tax loophole. Meanwhile, Amazon.com is seeking a sales tax exemption in Florida that would be similar to the ones granted by Tennessee and South Carolina in 2011.