3. Online Sales Simplification Act
The Online Sales Simplification Act (OSSA) has two key principles according to lawmakers: simplicity and No Regulation without Representation.
Under OSSA, a state would collect tax only on sales originating in the state, meaning the seller has a physical presence there. OSSA also imposes a formulaic “flat rate” for sellers within non-sales tax states and requires states to re-distribute taxes collected on remote sales to the destination states.
4. No Regulation Without Representation Act
The No Regulation without Representation Act would prevent states from taxing any seller that doesn’t have a physical presence in that state. This act would uphold the original intent of the 1992 Supreme Court case Quill Corp. vs. North Dakota. Bill sponsor Congressman Jim Sensenbrenner (R-Wis) explains that under his bill, a state cannot force a person to
- collect sales, use or similar tax;
- report the sale;
- or assess a tax on a person
The buyer must be physically present in the state during the relevant tax period in order for the state to tax him or her.
Changes to sales tax laws can affect the way marketers do their jobs. Stay on top of the proposed laws to make better marketing and business decisions.