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On May 6, the Senate voted 69 to 27 to approve the Marketplace Fairness Act of 2013 (the “Act”) (S. 743). The Act would allow states to require all sellers to collect and remit sales and use taxes with respect to remote sales to such state’s residents, provided that such state has adopted certain minimum simplification requirements to its sales tax system. The only amendment considered was Senate Majority Leader Harry Reid’s proposed amendment (SA. 741), which made several changes to the Act, including the following:

Expanding the Act to authorize tribal organizations to require sellers to collect and remit sales and use taxes with respect to remote sales to such tribal organization’s residents, subject to the adoption of certain minimum simplification requirements to its sales tax system;

  1. Clarifying that the Act applies only to “remote sales” and not to all “interstate sales;”
  2. Extending the period for states that are a member of the Streamlined Sales and Use Tax Agreement to exercise authority under the Act to no sooner than the first day of the calendar quarter, that is 180 days (instead of 90 days) after the date of the enactment of the Act, which now parallels the six-month waiting period for non-member states; and
  3. Clarifying that states that are a member of the Streamlined Sales and Use Tax Agreement would be held to the same minimum simplification requirements of the Act that apply to non-member states.

 

This legislation now moves over to the House of Representatives for its consideration. The House of Representatives is expected to give the legislation greater opposition.

 

 

Click here for earlier background on the Marketplace Fairness Act of 2013 covered in the February 28, 2013 Multistate Tax Update.

 

Click here for additional information on the Marketplace Fairness Act of 2013 covered in the April 25, 2013 Multistate Tax Update.

 

Click here for a full text of the bill passed in the Senate.

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