Online Sales Simplicity and Small Business Relief Act of 2019
This bill prohibits states from imposing a sales tax collection duty on certain remote sellers. A "remote seller" is a person without a physical presence in a state who makes a sale in the state.
A state may impose a sales tax collection duty on a remote seller only for a sale that occurs after January 1, 2019.
In the case of a small business remote seller (no more than $10 million in gross annual receipts in the United States), a state may not impose a sales tax collection duty on any person other than the purchaser if the sale is made (1) on or after June 21, 2018; and (2) before the date that is 30 days after the states develop and Congress approves an interstate compact, applicable to the state and sale, governing the imposition of tax collection duties on remote sellers.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1933 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 1933
To prohibit States from retroactively imposing a sales tax collection
duty on a remote seller, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2019
Mr. Sensenbrenner (for himself, Ms. Eshoo, Mr. Duncan, Ms. Lofgren, and
Ms. Kuster of New Hampshire) introduced the following bill; which was
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To prohibit States from retroactively imposing a sales tax collection
duty on a remote seller, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Online Sales Simplicity and Small
Business Relief Act of 2019''.
SEC. 2. RETROACTIVITY BAN AND ORDERLY PHASE-IN OF COMPLIANCE
OBLIGATIONS.
A State may impose a sales tax collection duty on a remote seller
only for a sale that occurs after January 1, 2019.
SEC. 3. SMALL BUSINESS REMOTE SELLER EXEMPTION.
In the case of a sale made by a small business remote seller, no
State may impose a sales tax collection duty on any person other than
the purchaser if the sale is made on or after June 21, 2018, and before
the date that is 30 days after the date on which the States develop and
Congress approves an interstate compact, applicable to the State and
sale, governing the imposition of tax collection duties on remote
sellers.
SEC. 4. SENSE OF CONGRESS.
It is the sense of Congress that the States should develop an
interstate compact for the collection of sales tax by remote sellers
that identifies a clearly defined minimum substantial nexus between the
remote seller and the taxing State, that simplifies registration,
collection, remittance, auditing, and other compliance processes to the
greatest extent possible in order to avoid undue burdens on interstate
commerce, and that, due to such simplification, eliminates the need for
the continuation of the small business remote seller exemption under
section 4.
SEC. 5. DEFINITIONS.
In this Act:
(1) Remote seller.--The term ``remote seller'' means a
person without a physical presence in the State who makes a
sale in the State.
(2) Physical presence.--
(A) In general.--Except as provided in subparagraph
(B), the term ``physical presence'' means, with respect
to a person, that a person's business activities in the
State include any of the following during such person's
taxable year:
(i) Being an individual physically in the
State, or assigning one or more employees to be
in the State.
(ii) Using the services of an agent
(excluding an employee) to establish or
maintain a market in the State, if such agent
does not perform business services in the State
for any other person during such taxable year.
(iii) The leasing or owning of tangible
personal property (other than digital or
alphanumeric data) or of real property in the
State.
(B) Exception.--A person does not have physical
presence in a State if the person's physical presence
in the State under subparagraph (A) was for less than
15 days in a taxable year (or a greater number of days
if provided by State law), or if the person's physical
presence in the State was solely for the purpose of
conducting limited or transient business activity.
(3) Sales tax collection duty.--The term ``sales tax
collection duty'' means--
(A) an obligation imposed on a person, including a
person other than the actual seller, to--
(i) pay or collect a sales, use, or similar
tax upon the sale of a good or service; or
(ii) report any information with respect to
such sale of a good or service; or
(B) the assessment of a sales, use or similar tax
on a person.
(4) Small business remote seller.--The term ``small
business remote seller'' means a remote seller with gross
annual receipts in the United States during the preceding
calendar year in an amount that is not more than $10,000,000.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.
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