Isaacson, DMA Battle Sales Tax Collection Bill

Appearing on behalf of the DMA in early December, George Isaacson testified before the U.S. House Judiciary Subcommittee on Commercial & Administrative Law in opposition to bill H.R. 3396, the Sales Tax Fairness and Simplification Act. The bill, introduced last August by Rep. William Delahunt (D-Mass.), would make interstate sales tax collection mandatory, regardless of whether the seller has a physical presence or “tax nexus” in the taxing state.

Isaacson argued that if enacted, the bill would “seriously jeopardize the continued growth of e-commerce in the U.S.” Referencing the Streamlined Sales Tax Agreement (SSTA) included in the legislation, Isaacson called the bill “fundamentally flawed,” noting that it fails to reduce the 7,600 varying tax rates across the U.S.; reduce the burden of tax collection, remittance of tax and audits placed on interstate marketers; and fails to guarantee fundamental fairness with respect to vendor compensation for tax collection.