S.743 Marketplace Fairness Act of 2013

Week Ending April 25, 2013

S.743 Marketplace Fairness Act of 2013

     S. 743 would allow states to require certain sellers that are not physically located in the state to collect taxes on sales to individuals who are located in the state.

     The bill explains that there are States who are members of the Streamlined Sales and Use Tax Agreement adopted in 2002. The Agreement is a multistate agreement for the administration and collection of sales and use taxes. Under the Agreement there is an exception for ‘small-sellers’, those whose national remote sales do not exceed $1 million annually in States where they do not have a physical presence. Remote sales means sale of goods or services in a State in which the seller would not legally be required to pay, collect, or remit state or local sales and use taxes. Under the bill non-member States may also exempt small-sellers but the State must begin to enact legislation to exercise the authority under this bill and must specify the tax or taxes to which this authority applies and puts in place the minimum simplification requirements.

     States must provide information indicating the taxability of products and services (or exemptions). States must provide to remote sellers free software that calculates sales and use taxes due on each transaction. Remote sellers are relieved of liability to the state or locality for the incorrect collection, remittance or non-collection of sales and use taxes including any penalties or interest if the liability is the result of an error or omission made by the software provider. The software providers are relieved of liability if the remote seller gives them misleading or inaccurate information.

     Remote sellers are not required to file sales and use tax returns any more frequently than nonremote-sellers.

 Sponsor:  Sen Enzi, Michael B. [WY]

VOTES

House:

Motion to recommit.

Text of the motion:  

Senate:  4/25/2013: Cloture on measure invoked in Senate by Yea-Nay Vote. 63 – 30. Record Vote Number: 111

Agreed to in the Senate Recorded Vote 113

Senate amendments:

Enzi Amdt. No. 741; Of a perfecting nature. ( S.Amdt. 741) Agreed to RV112

Cost to the taxpayers: CBO estimates that enacting S. 743 would have no impact on the federal budget.

Pay-as-you-go requirements: Because the bill would not affect direct spending or revenues, pay-as-you-go procedures do not apply.

Regulatory impact:  S. 743 would impose no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.

Earmark Certification: Not relevant

Constitutional Authority: Senate does not offer constitutional authority statements

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