The AICPA State Legislation Team and the AICPA Tax Advocacy Team have put together resources on the Supreme Court’s Wayfair decision, especially as congressional efforts to respond to Wayfair have progressed.
There are two pieces of legislation in the works, and both have ties to South Carolina representatives.
In September, the Online Sales Simplicity and Small Business Relief Act (click here to read H.R. 6824), a new online sales tax bill, was introduced in the House of Representatives and sponsored by Rep. Jeff Duncan (R-South Carolina) along with Reps. Jim Sensenbrenner (R-Wisconsin), Anna Eshoo (D-California) and Zoe Lofgren (D-CA).
The bipartisan bill would prohibit states from imposing retroactive laws related to the collection of sales tax, prevent states from imposing sales tax collection duties until Jan. 10, 2019 and create an exemption for small businesses with under $10 million in online sales.
The Protecting Businesses from Burdensome Compliance Cost Act (click here to read H.R. 6724) was also introduced in September, cosponsored by Reps. Joe Wilson (R-South Carolina) and Diane Black (R-Tennessee) under Rep. Bob Gibbs (R-Ohio).
It is designed to “ease the burden for out-of-state vendors” working to comply with sales and use taxes in other states. It would prevent states from collecting sales and use tax if there is no physical presence.
While opponents of the Wayfair decision applauded the introduction of the bills, few expect Congress to act before the end the year
AICPA’s background summery of the Federal outlook in the wake of the Wayfair decision can be found here: https://www.aicpa.org/content/dam/aicpa/advocacy/state/downloadabledocuments/federal-post-wayfair.pdf
AICPA’s overall South Dakota v. Wayfair page can be found here: https://www.aicpa.org/advocacy/state/south-dakota-v-wayfair.html
The SC DOR’s Remote Sellers: Sales & Use Tax for Remote Sellers: South Dakota v. Wayfair page can be found here: https://dor.sc.gov/remotesellers