Main Street Fairness Act
Encyclopedia
The Main Street Fairness Act
, formally known as H.R. 5660, is a bill before the United States Congress
which would "promote simplification and fairness in the administration and collection of sales and use taxes, and for other purposes." Proponents say that it will create billions of dollars in sales tax
revenue to local communities without raising taxes or creating a new tax. Specifically, the Main Street Fairness Act would allow state governments to require large out-of-state retailers to collect and remit sales tax on purchases shipped to those residents of those states. The Main Street Fairness Act was introduced by William Delahunt, a Democrat from Massachusetts
, on June 30, 2010. As of October 2011 it has not passed the House
or the Senate
.
, 386 US 753 (1967), it was held that a business whose only contacts with the taxing state are by mail or by common carrier lacks the "substantial nexus" required under the Dormant Commerce Clause.
Main Street Fairness Act
The Main Street Fairness Act, formally known as H.R. 5660, is a bill before the United States Congress which would "promote simplification and fairness in the administration and collection of sales and use taxes, and for other purposes." Proponents say that it will create billions of dollars in...
, formally known as H.R. 5660, is a bill before the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
which would "promote simplification and fairness in the administration and collection of sales and use taxes, and for other purposes." Proponents say that it will create billions of dollars in sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
revenue to local communities without raising taxes or creating a new tax. Specifically, the Main Street Fairness Act would allow state governments to require large out-of-state retailers to collect and remit sales tax on purchases shipped to those residents of those states. The Main Street Fairness Act was introduced by William Delahunt, a Democrat from Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, on June 30, 2010. As of October 2011 it has not passed the House
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
or the Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
.
Current law
Under current state laws, consumers are generally responsible for paying the sales tax due on their online purchases. Due to problems with compliance, some states have considered laws which would compel online retailers to report consumers' purchases to state tax collectors. Some consumer advocacy groups believe such reporting requirements violates consumer privacy. By shifting the remittance duty of sales tax from consumers to retailers, the Main Street Fairness Act would make it unnecessary for retailers to report customers' purchases to the state.National Bellas Hess
In National Bellas Hess, Inc. v. Department of Revenue of IllinoisNational Bellas Hess v. Illinois
In National Bellas Hess v. Department of Revenue, 386 U.S. 753, 87 S.Ct. 1389 , the Supreme Court ruled that a mail order reseller was not required to collect sales tax unless it had some physical contact with the state.-Background:...
, 386 US 753 (1967), it was held that a business whose only contacts with the taxing state are by mail or by common carrier lacks the "substantial nexus" required under the Dormant Commerce Clause.
Quill case
In Quill Corps. v. North Dakota the Supreme Court ruled that a business must have a physical presence in a state for that state to require it to collect sales taxes.Arguments
Supporters of the Main Street Fairness Act say it will benefit state and local governments by increasing tax revenue and protect local businesses from unfair competition that exploits what they see as a tax loophole.See also
- Alliance for Main Street FairnessAlliance for Main Street FairnessThe Alliance for Main Street Fairness is an advocacy group based in the United States of America dedicated to ending what it sees as unfair tax advantages for online-only retailers with respect to the collection of sales taxes.-Federal legislation:...
- Sales taxes in the United StatesSales taxes in the United StatesThere is no federal sales or use tax in the United States. 45 states and the District of Columbia impose sales and use taxes on the retail sale, lease and rental of many goods, as well as some services. Many cities, counties, transit authorities and special purpose districts impose additional local...
- Amazon taxAmazon taxAmazon.com has been criticized for only collecting sales taxes from customers in U.S. states where it has a physical presence. Several states have passed or are considering "Amazon tax" laws designed to compel Amazon to collect sales and use taxes from customers.This issue doesn't apply in most of...
External links
- Main Street Fairness Act at OpenCongress