ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session

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HCM2006: remote sellers; taxes; urging Congress

Sponsor:  Representative Pierce, LD 1

Committee on Federal Relations

Overview

Urges the United States (U.S.) Congress to enact uniform national legislation for remote sellers to collect and remit sales taxes.

History

On June 21, 2018, the U.S. Supreme Court, in the Wayfair v. South Dakota case, reversed the long-standing Quill case (1992) that required a physical presence test for a state to impose a sales tax on a remote seller. The Wayfair decision stated that South Dakota's tax system appears designed to prevent undue burdens upon interstate commerce. This decision resulted from three main findings: 1) South Dakota applies a safe harbor to sellers that have limited business in the state; 2) South Dakota is not applying their tax retroactively; and 3) South Dakota has adopted the Streamlined Sales and Use Tax Agreement, which standardizes taxes to reduce administrative and compliance costs.

On May 31, 2019, Governor Doug Ducey signed House Bill 2757 into law. (Laws 2019, Chapter 273) This legislation requires remote sellers and marketplace facilitators to begin filing and paying transaction privilege tax (TPT) in Arizona starting October 1, 2019 depending on their level of economic presence in Arizona.

According to the Arizona Legislative Manual, A memorial is a message sent to an officer or entity outside the Legislature and allows the Legislature to petition the recipient to acknowledge stated facts and act in a manner consistent with the request. It implies that the “memorialist” (the Legislature) lacks authority to act directly on the subject. Memorials may request or propose that Congress or the President of the United States, federal agencies and officers or other states do things the Arizona Legislature has no jurisdiction to do itself. Memorials are not signed by the Governor.  Arizona Legislative Manual

Provisions

1. Urges the U.S. Congress to enact uniform nationwide legislation to simplify sales tax or similar tax collection to lessen the burden of tax compliance on remote sellers.

2. Instructs the Arizona Secretary of State to transmit copies of this Memorial to the following individuals:

a) the President of the U.S. Senate;

b) the Speaker of the U.S. House of Representatives; and

c) each Member of Congress from the State of Arizona.

d)

e)

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g) Initials DC/GKS                      Federal Relations

h)

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