Legal Matters: Proposed Marketplace Fairness Act Threatens Direct Marketers
Bill would complicate tax obligations for thousands of small and midsized remote sellers and millions of consumers
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In addition, this newest effort to expand state tax authority differs in substance from prior bills. Whereas most of the previous bills would have benefited only those states that adopted legislation conforming their tax codes to the so-called Streamlined Sales and Use Tax Agreement, the current legislative proposal has no such limitation. Consequently, if the bill passes it would force any retailer with more than $500,000 of annual sales nationwide to collect sales taxes in more than 8,000 state and local tax jurisdictions.
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George S. Isaacson
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