Amazon Tax Issue Heats Up on Capitol Hill

The battle over the so-called Amazon Tax has officially moved to Washington with the debate over the Marketplace Fairness Act.  The Act allows states to require out of state retailers to collect sales tax provided they are part of the Streamlined Sales and Use Tax Agreement which currently includes 24 states are members (see map left) or take steps independently to streamline and simplify the sales tax collection process.  The bill, however, exempts entities having less than $1M a year in total remote sales in the U.S. the prior year.

The bill passed the Senate 69-27 in May, but has received a chilly reception in the House of Representatives where conservative Republican opposition to the bill is growing.  Opponents of the bill include Grover Norquist of Americans for Tax Reform, eBay, the Direct Marketing Association and NetChoice, while supporters include Amazon, Staples, Walmart and the National Retailer Federation.

House Judiciary Committee Chairman Bob Goodlatte (R-VA) has gone on record as doubting that the bill will pass and stressed that the Committee was

looking at alternatives that could enable states to collect sales tax revenues without opening the door to aggressive state action against out-of-state companies.

House Speaker Boehner also has come out against the bill.

Rebecca Madigan of the Performance Marketing Association and Net Choice’s Steve DelBianco debated the issue on a recent Cyber Law & Business Report:

Background:  Link

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