Sales Tax Initiative

On Monday, June 13, the Louisiana House of Representatives approved legislation that would require remote retailers with online affiliates in the state to collect and remit sales tax for orders made by Louisiana residents.

On Wednesday, June 1, the Performance Marketing Association, a trade association of online affiliates and large online retailers — including Amazon.com — filed a lawsuit challenging the constitutionality of Illinois’ affiliate nexus law.

While California and Louisiana moved sales tax fairness bills forward this week, Texas and South Carolina blinked in their showdowns with Amazon.com.

The campaign for sales tax fairness has heated up in key states where Amazon.com has or is planning to open warehouse or distribution facilities.

Sales tax fairness successes continued this week as an attempt to repeal a sales tax fairness law in Colorado failed and the Texas Senate Finance Committee unanimously passed sales tax fairness legislation.

This week, ABA CEO Oren Teicher called on South Carolina Gov. Nikki Haley to support efforts to clarify existing tax laws to require companies with broad networks of online affiliates to collect and remit sales tax to the state.

On Wednesday, May 4, the Pennsylvania Senate Finance Committee held a hearing on sales tax fairness. Committee members heard testimony from both opponents and supporters of efforts to ensure that all retailers collect sales tax for online sales.

On Wednesday, May 4,  Connecticut Gov. Dannell Malloy signed a state budget into law that includes an affiliate nexus provision requiring remote retailers with broad networks of online affiliates in the state to collect and remit sales tax.

Independent bookstores and other bricks-and-mortar retailers scored a victory yesterday when the South Carolina House of Representatives defeated an amendment to H3488 that would have given Amazon.com a special sales tax exemption.

Late last week, Connecticut Gov. Dannel P. Malloy announced a budget deal that includes an affiliate nexus tax. In Texas, a sales tax fairness bill introduced by Rep. John Otto overwhelmingly passed the Texas House.

Michelle Ahlmer, executive director of the Arizona Retailers Association, discusses the hard work that resulted in Arizona sales tax fairness legislation making significant progress this year, as well as the prospects for next year.

ABA is asking member bookstores in South Carolina to call senators in both their store and home districts to urge them to vote “No” on S. 808,  a bill that would provide Amazon.com and QVC with a five-year sales tax exemption.

Despite making significant progress in the legislature, it appears that sales tax equity legislation will not come to a vote in Arizona this year.

In the past week, Massachusetts booksellers David Didriksen and Carole Horne and Vermont booksellers Liza Bernard and Chris Morrow participated in hearings in support of sales tax fairness legislation in their respective states.

It is shaping up to be a notable year for sales tax fairness, as more states introduce, pass, or sign sales tax fairness legislation into law despite threats by Amazon.com and Overstock.com to terminate sales affiliates or close warehouses.