Internet Sales Tax Fairness
NAR supports the passage of legislation to level the sales tax playing field for all retailers.
Rep. Jason Chaffetz (R-UT) introduced H.R. 2775, the Remote Transactions Parity Act of 2015 (“RTPA”). This bill, cosponsored by Rep. Steve Womack (R-AR), would provide a level playing field between traditional “brick-and-mortar” retailers and remote sellers with respect to the collection of state sales taxes. It does this by giving states the authority to certify software which remote sellers can integrate into their online stores, which handles determining what sales tax to charge for buyers and collecting/remitting it. States are required to provide this software to remote sellers at no cost. Finally, the RTPA gradually phases in which sellers must collect and remit sales taxes based on their gross annual receipts. This phase-in should help alleviate administrative confusion and give smaller sellers time to prepare for the change.
On March 12, the House Judiciary Committee held a full committee hearing on "Exploring Alternative Solutions on the Internet Sales Tax Issue." During the hearing, Members on the committee and the witnesses, who included a representative from shopping mall owners/operators, tax attorneys, and former U.S.
Commercial real estate professionals' clients face a disadvantage against out-of-state Internet retailers on tax collection.
On March 18, 2013, NAR, in coalition with other industry groups, sent a letter to the Senate in support of a proposed amendment to the fiscal year 2014 Senate Budget Resolution which would implement S. 336, the Marketplace Fairness Act.