Enzi works to collect taxes on internet sales
July 3, 2007
In May, Wyoming U.S. Senator Mike Enzi (R) introduced legislation to require online retailers and catalog stores making sales in Wyoming to pay state sales tax just as in-store businesses are required to do.
The bill, the “Sales Tax Fairness and Simplification Act” would develop a tax system that would collect sales and use tax that is lost because remote sellers are not currently required to collect and remit sales and use taxes on catalog and internet purchases. Enzi says this is costing states and localities billions in lost revenues. He contends that if the lost revenue is allowed to continue other taxes, such as income or property taxes, will have to be increased to offset the lost revenue to state and local governments.
According to information on Senator's website regarding this legislation, his bill "would not increase taxes or allow duplicate taxes in different states. The legislation would streamline the country’s more than 7,500 diverse sales tax jurisdictions by permitting states that become voluntary members of the Streamlined Sales and Use Tax Agreement to require remote sellers to collect and remit sales and use taxes. A total of 15 states have permanently changed their tax laws and implemented the requirements of the Agreement. The Agreement would help harmonize states sales and use tax rules, bring uniformity to the definitions of items in the sales tax base, reduce the paperwork burden on retailers, and incorporate new technology to modernize administrative procedures."
Enzi’s bill includes a Small Business provision that would allow remote sellers who make less than $5 million nationwide in the year preceding the sale to qualify for an exemption and not be required to collect the tax.
The bill has been referred to the Senate Finance Committee.
Related Links:
U.S. Senator Mike Enzi’s website
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