Stop Taxing Our Potential Act of 2019
This bill prohibits a state from imposing on a person obligations related to collecting or paying a sales tax, use tax, or similar tax unless the person had a physical presence in the state during the calendar quarter with respect to which the obligation is imposed.
A person is physically present if the person's business activities in the state include
The bill specifies certain activities and agreements that indicate a de minimis physical presence that is excluded from the definition of "physical presence."
The bill also specifies that U.S. district courts have original jurisdiction over civil actions to enforce this bill.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5515 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 5515
To regulate certain State impositions on interstate commerce.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 19, 2019
Ms. Kuster of New Hampshire (for herself, Mr. Schrader, Ms. Bonamici,
and Mr. Pappas) introduced the following bill; which was referred to
the Committee on the Judiciary
_______________________________________________________________________
A BILL
To regulate certain State impositions on interstate commerce.
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 ``Stop Taxing Our Potential Act of
2019''.
SEC. 2. MINIMUM JURISDICTIONAL STANDARDS FOR STATE AND LOCAL SALES AND
USE TAX COLLECTION.
(a) In General.--A State may not--
(1) impose an obligation on a person for--
(A) the collection of a sales tax, use tax, or any
similar tax; or
(B) the reporting of any information with respect
to a tax described in subparagraph (A);
(2) assess any tax described in paragraph (1)(A) on a
person; or
(3) treat a person as doing business in a State for
purposes of any tax described in paragraph (1)(A),
unless such person had a physical presence in the State during the
calendar quarter with respect to which such obligation or assessment is
imposed.
(b) Requirements for Physical Presence.--
(1) In general.--For purposes of subsection (a), a person
has a physical presence in a State only if such person's
business activities in the State include any of the following
during the calendar quarter:
(A) Maintains its commercial or legal domicile in
the State.
(B) Owns, holds a leasehold interest in, or
maintains real property such as a retail store,
warehouse, distribution center, manufacturing
operation, or assembly facility in the State.
(C) Leases or owns tangible personal property
(other than computer software) of more than de minimis
value in the State.
(D) Has one or more employees, agents, or
independent contractors present in the State who
provide on-site design, installation, or repair
services on behalf of the remote seller.
(E) Has one or more employees, exclusive agents or
exclusive independent contractors present in the State
who engage in activities that substantially assist the
person to establish or maintain a market in the State.
(F) Maintains an office in the State at which it
regularly employs three or more employees for any
purpose.
(2) De minimis physical presence.--For purposes of this
section, the term ``physical presence'' shall not include--
(A) entering into an agreement under which a
person, for a commission or other consideration,
directly or indirectly refers potential purchasers to a
person outside the State, whether by an internet-based
link or platform, internet website or otherwise;
(B) any presence in a State, as described in
section 2(b)(1), for less than 15 days in a taxable
year (or a greater number of days if provided by State
law);
(C) product placement, setup, or other services
offered in connection with delivery of products by an
interstate or in-State carrier or other service
provider;
(D) internet advertising services provided by in-
State residents which are not exclusively directed
towards, or do not solicit exclusively, in-State
customers;
(E) ownership by a person outside the State of an
interest in a limited liability company or similar
entity organized or with a physical presence in the
State;
(F) the furnishing of information to customers or
affiliates in such State, or the coverage of events or
other gathering of information in such State by such
person, or his representative, which information is
used or disseminated from a point outside the State; or
(G) business activities directly relating to such
person's potential or actual purchase of goods or
services within the State if the final decision to
purchase is made outside the State.
(c) Protection of Non-Sellers.--A State may not impose or assess a
sales, use, or similar tax on a person or impose an obligation to
collect or report any information with respect thereto, unless such
person is either a purchaser or a seller having a physical presence in
the State.
SEC. 3. DISPUTE RESOLUTION.
The district courts of the United States shall have original
jurisdiction over civil actions to enforce the provisions of this Act,
including authority to issue declaratory judgments pursuant to section
2201 of title 28, United States Code, and, notwithstanding the
provisions of section 1341 of such title, injunctive relief, as
necessary to carry out any provision of this Act.
SEC. 4. DEFINITIONS AND EFFECTIVE DATE.
(a) Definitions.--For purposes of this Act:
(1) Marketplace provider.--The term ``marketplace
provider'' includes any person, other than a seller, who
facilitates a sale. For purposes of this subsection, a person
facilitates a sale when the person both--
(A) lists or advertises products for sale in any
forum, including a catalog or internet website; and
(B) either directly or indirectly through
agreements or arrangements with third parties, collects
gross receipts from the customer and transmits those
receipts to the marketplace seller, whether or not such
person deducts any fees or other amounts from those
receipts prior to transferring them to the marketplace
seller.
(2) Marketplace seller.--The term ``marketplace seller''
means a person that has any sales facilitated by a marketplace
provider.
(3) Person.--The term ``person'' has the meaning given such
term by section 1 of title 1, United States Code. Each
corporation that is a member of a group of affiliated
corporations, whether unitary or not, is itself a separate
person.
(4) Product.--The term ``product'' includes any good or
service, tangible or intangible.
(5) Referrer.--The term ``referrer'' shall mean every
person who--
(A) contracts or otherwise agrees with a seller to
list multiple products for sale and the sales prices
thereof in any forum, including a catalog or internet
website;
(B) receives a fee, commission, or other
consideration from a seller for the listing;
(C) transfers, via telephone, internet link, or
otherwise, a customer to the seller or the seller's
website to complete a purchase; and
(D) does not collect receipts from the customer for
the transaction.
(6) Seller.--The term ``seller'' does not include--
(A) any marketplace provider (except with respect
to the sale through the marketplace of products owned
by the marketplace provider);
(B) any referrer;
(C) any carrier, in which the seller does not have
an ownership interest, providing transportation or
delivery services with respect to tangible personal
property; and
(D) any credit card issuer, transaction or billing
processor, or other financial intermediary.
(7) Similar tax.--The term ``similar tax'' means a tax that
is imposed with respect to the sale or use of a product,
regardless of whether the tax is imposed on the person making
the sale or the purchaser, with the right or obligation of the
person making the sale to obtain reimbursement for the amount
of the tax from the purchaser at the time of the transaction.
(8) State.--The term ``State'' means the several States,
the District of Columbia, the Commonwealth of Puerto Rico,
Guam, American Samoa, the United States Virgin Islands, the
Commonwealth of the Northern Mariana Islands, and any other
territory or possession of the United States and includes any
political subdivision thereof.
(b) Effective Date.--This Act shall apply with respect to calendar
quarters beginning on or after August 1, 2019.
<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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