5 ms·

It's not that simple. http://online.wsj.com/article/SB10001424127887323628004578457030883341340.html http://online.wsj.com/article/SB100014241278873236280045784

• dangrossman 13y ago
  It's very clear that remote sellers cannot be audited by any entity except that one per state which will be created. > Such authority shall commence...after the date that the State­...implements each of the following minimum simplification requirements: a single audit of a remote seller for all State and local taxing jurisdictions within that State Local municipalities have no legal jurisdiction to tax entities outside their boundaries, and this bill does nothing to change that.
  • Turing_Machine 13y ago
    "Local municipalities have no legal jurisdiction to tax entities outside their boundaries" Neither do states, but that's not stopping them from trying.
    • deleted 13y ago
      [deleted]
    • btilly 13y ago
      Your comment demonstrates a fundamental lack of understanding of the question at stake here. The issue is not whether the state can tax entities outside their boundaries. The issue is when the state can ask companies headquartered elsewhere to assist in the collection of taxes owed to the state by citizens of said state. In legal theory the taxes are owed regardless of whether third parties like Amazon assist in their collection. In practice they don't get collected unless it is done by those third parties. (Because people don't volunteer that information, and the state has no way to prove who bought what for how much without paying taxes.) Until this bill, the question centered on how broadly states could define companies headquartered elsewhere as having a business presence in the state, and therefore within the state's power to compel. But this bill is being passed by Congress under the Commerce Clause, and there are no legal questions about whether sufficient legal authority exists for this purpose.
      • Turing_Machine 13y ago
        Oh, I understand the issue thoroughly, thanks, given that I pay Illinois use tax every year. That's between me and Illinois, though. I don't see why some company that's not even in Illinois (and that thus receives no Illinois services of any kind) should have to take the hit to comply with Illinois law.