United States

Federal: Marketplace Fairness Act of 2015 Introduced in U.S. Senate

Mar 16, 2015
From KPMG TaxWatch

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On March 10, 2015, Senators Enzi (WY) and Durbin (IL), along with seven other co-sponsors, introduced the Marketplace Fairness Act of 2015 into the 114th Congress. Similar to previous iterations of the bill, the Marketplace Fairness Act of 2015 would allow states to require remote sellers to collect and remit sales and use taxes on sales to in-state customers under certain conditions. Recall, the Marketplace Fairness Act of 2013 passed the Senate in May 2013, but failed to gain traction in the House of Representatives and died when the 113th Congress adjourned in December 2014.

The 2015 Act includes language substantially similar to the previous version, allowing states that (1) are full members of the Streamlined Sales and Use Tax Agreement (SSUTA), or (2) enact certain minimum simplification requirements outlined in the bill, to require certain remote sellers to collect and remit sales tax. A small seller exception would exclude sellers with under $1,000,000 in gross annual receipts from total remote sales in the United States in the preceding calendar year from being required to collect and remit. The 2015 version, however, prohibits states from imposing collection and remittance requirements on remote sellers prior to one year after Marketplace Fairness is enacted, or during the retail busy season between October and December of the first calendar year that Marketplace Fairness Act is enacted. For more information on the Marketplace Fairness Act of 2015, please contact Loren Chumley at (615) 248-5565 or Harley Duncan at (202) 533-3254.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.