Congress Should Exclude Sales of Services From Any Remote Vendor Tax Collection Legislation. Bloomberg BNA , Daily Tax Report.
Insight August 14, 2015
No topic in the state tax world is more controversial than the potential imposition of sales and use tax collection responsibilities on remote vendors (i.e.,retailers lacking substantial nexus with the state at issue).
The dispute is loud and public, with battle lines that seem to offer no real hope for compromise. The states estimate that there will be an enormous increase in tax revenue if remote vendors are required to collect taxes on their sales; on the other hand, industry officials predict substantial adverse effects on remote vendors’ sales, coupled with unreasonable compliance costs.