Business Daily.
.
The Times Real Estate
A+ R A-

House Releases Seven Basic Principles on Internet Sales Tax

E-mail Print PDF
image

DALLAS, Sept. 20, 2013 /PRNewswire/ -- On September 19, 2013, the House Judiciary Committee released Seven Basic Principles on Remote Sales Tax. The purpose behind these principles is to guide discussion on the Marketplace Fairness Act and to encourage creative problem solving. Input received directly from taxpayers, industry and trade groups, and state and local government representatives played a key role in development of the seven principles, which are set out below:

(Logo: http://photos.prnewswire.com/prnh/20110726/DA41187LOGO)

  • Tax Relief – Using the Internet should not create new or discriminatory taxes not faced in the offline world. Nor should any fresh precedent be created for other areas of interstate taxation by states.
  • Tech Neutrality – Brick and mortar, exclusively online, and brick and click businesses should all be on equal footing. The sales tax compliance burden on online Internet sellers should not be less, but neither should it be greater than that on similarly situated offline businesses.
  • No Regulation Without Representation – Those who would bear state taxation, regulation, and compliance burdens should have direct recourse to protest unfair, unwise, or discriminatory rates and enforcement.
  • Simplicity – Governments should not stifle businesses by shifting onerous compliance requirements onto them; laws should be so simple and compliance so inexpensive and reliable as to render a small business exemption unnecessary.
  • Tax Competition – Governments should be encouraged to compete with one another to keep tax rates low, and American businesses should not be disadvantaged vis-a-vis their foreign competitors.
  • States' Rights – States should be sovereign within their physical boundaries. In addition, the federal government should not mandate that states impose any sales tax compliance burdens.
  • Privacy Rights – Sensitive customer data must be protected.

Since its passage by the Senate and subsequent move to the House in May, the Marketplace Fairness Act has gained little if any traction. These principles may be just what "the doctor ordered" to shake things up a bit and spur debate. The full press release can be found on the House Judiciary Committee website.

About RyanRyan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 9,000 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.Jerry LynchProfNet - https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=113520

TECHNICAL INFORMATION CONTACT:

Jeremiah T. LynchPrincipalRyan212.871.3901jeremiah.lynch@ryan.com

SOURCE Ryan

RELATED LINKShttp://www.ryan.com

Business Daily Media