DALLAS, Aug. 30, 2016 /PRNewswire/ -- On August 25, 2016, the Chairman of the House Judiciary Committee, Representative Robert Goodlatte, released a discussion draft of the Online Sales Tax Simplification Act of 2016. In keeping with prior drafts, the goals of this updated draft remain, leveling the playing field for brick and mortar sellers, providing compliance simplification and ensuring tax gets collected on all taxable remote sales. Some of the noteworthy aspects of the draft include, but are not limited to:
- Removing, under certain circumstances, the physical presence requirement set out in Quill v. North Dakota, in which the Supreme Court held that a business must have physical presence in a state before the state could require the business to collect use tax on its behalf,
- Implementing a hybrid-origin approach to sourcing,
- Limiting audits of a seller's remote sales to the origin state, and
- Limiting the destination-state's rate for remote sales to a single statewide rate.
The most significant aspect of the draft is the shift to taxation of remote sellers on an origin basis and not the traditional destination based method. It is expected the House will review this draft after members of Congress return from the summer recess on September 6, 2016. Ryan will continue to monitor and provide updates on the Online Sales Tax Simplification Act.
Ryan 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. With global headquarters 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 five-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 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
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