Sales Tax Initiative

Many states, cities, and counties are watching their sales tax revenues decrease and their budget shortfalls grow as more and more consumers buy via the Internet, where many national retailers do not collect sales tax. Some politicians in Washington are looking to address this issue by introducing legislation that would give states the power to enforce simplified rules for collecting sales tax across state lines.

On Wednesday, October 1, retail organizations and Colorado Governor Bill Owens testified before a House subcommittee at an oversight hearing regarding The Streamlined Sales Tax Agreement (H.R. 3184), a bill that would allow states to simplify sales tax, with equal tax treatment between local merchants and remote sellers. Congressmen Ernest Istook (R-OK) and William Delahunt (D-MA) introduced the legislation last Thursday.

On Thursday, September 25, Representatives Ernest Istook (R-OK) and William Delahunt (D-MA) introduced legislation into the U.S. House of Representatives that would allow states to simplify sales tax, with equal tax treatment between local merchants and remote sellers. It is also expected that Senators Byron Dorgan (D-ND) and Michael Enzi (R-WY) will introduce a similar bill into the Senate next week.