Dear Industry Executive:
We need your help to move the ball forward on the Federal remote sales tax issue!
As you know, ACMA supports the House Judiciary Committee’s approach to the remote sales tax issue. This approach allows remote sellers to collect sales taxes using their home state base and a simplified one-rate-per-state destination rate, which would dramatically improve the process compared to the Marketplace Fairness Act (MFA) and the Remote Transactions Parity Act (RTPA). To address serious concerns about states’ cross-border reach, the Committee’s approach would require that both remittance and audits would be handled by the seller’s home state. The seller’s home state would forward the sales tax collected to the customer’s state using a clearinghouse similar to the fuel tax structures that have worked well for years. ACMA believes that this destination rate / origin-base hybrid approach is the simplest, clearest and fairest way to address the remote sales tax issue.
ACMA encourages the catalog and broader remote retail industries to reach out to your home-state governors to educate them about the proposed House Judiciary Committee approach, as well as to garner support from your governors. If you have a relationship with governors from states in which you and your company has a physical presence, please reach out to pass along this message. If you want to meet your governors and/or their staffs for the first time, please let ACMA know and we can help facilitate these meetings.
Ask your governor(s) to contact the House Judiciary Committee and say either they: (i) support the hybrid destination rate / origin-base approach; (ii) would like to learn more about it; or (iii) are willing to work with Committee members to accept that basic framework. This will enable the House Judiciary Committee to work out the details and get something done.
Please click here for a summary of the House Judiciary Committee’s proposal and click here for a comparison of the Committee’s discussion draft with the MFA and RTPA and pass it along to state policymakers.