New E-Fairness Legislation Introduced in Congress
Representative Jason Chaffetz has introduced H.R. 2775, also known as the Remote Transactions Parity Act. If approved, the bipartisan proposal would require the collection of sales tax by out-of-state retailers and create a uniform sales tax collection standard for online retailers and brick-and-mortar stores. Current law allows states to only require retailers with a physical presence in the state to collect sales tax. This bill would level the playing field for all businesses.
H.R. 2775 differs from the Marketplace Fairness Act (another similar proposal) in that H.R. 2775 establishes audit protections and requires states to provide sales tax collection software and integration to remote sellers free of charge. H.R. 2775 is pending review by the House Judiciary Committee. NAMM will continue to closely monitor this proposal as it moves through the legislative process.
A summary of H.R. 2775 by the International Council of Shopping Centers can be found here.