DALLAS, May 21, 2013 /PRNewswire/ -- On Monday, May 6, 2013, the Marketplace Fairness Act passed in the United States Senate (Senate Bill 743). If enacted, it will allow states and the District of Columbia to require online retailers to collect sales and use tax without a physical presence nexus requirement. The bill imposes a threshold of one million dollars of business transacted in order for a jurisdiction to require these online retailers to collect sales and use taxes.
The bill has the support of the Obama administration and, at 69-27 in favor of the legislation, passed the Senate with little difficulty. Some representatives in the House, however, are mixed in their support of the bill, with some claiming it merely allows enforcement of existing taxes, while others remain critical of the increased taxes on consumers and the new tax burden on business transacted over the Internet. The House version (House Bill 684) was referred to the Subcommittee on Regulatory Reform, Commercial, and Antitrust Law on April 8, 2013.
Online retailers are also broadly mixed in their reaction to the bill. Certain large retailers already collect sales tax for online transactions; others have voiced concerns that they will face not only the burden of new taxes but also the administrative difficulty of calculating differing tax rates in different jurisdictions.
About Ryan Ryan is an award-winning global tax services firm, with the largest indirect tax practice 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.