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Tuesday, September 25, 2012
With three proposals pending in Congress to grant states authority to collect sales tax from remote
retailers, it seems that the prospect of enacting such a measure has never been
Naysayers point out that the bills
will not be enacted because the public is likely to perceive the states’
expanded collection authority as a new tax.
But there is a different hurdle that
can block these proposals’ enactment that has little to do with the merits of
Most tax bills in Congress are
introduced and then referred to the Joint Committee on Taxation. But the online
sales tax proposals are taking a different route, noted Ernst &
Young LLP's Steven N.J. Wlodychak at Bloomberg BNA’s Advisory Board Roundtable
at Georgetown Law Center. The bills have been referred to the Judiciary
Committee in the House and the Commerce Committee in the Senate.
Unlike the Joint Committee on Taxation, where House and
Senate staff are accustomed to working with one another, there is a lack of
similar relationships between the House Judiciary and Senate Commerce
Committees, Wlodychak said.
“My friends with experience on Capitol Hill said even trying
to get the connectivity of the staff in both the Senate and the House is an
obstacle in and of itself. So, it's kind of fascinating to see that no matter
what kind of development that you have here there are the administrative
mechanics in the Congress to try and get this legislation passed,” he added.
The Bloomberg BNA Advisory Board Roundtable’s insights on
sales tax nexus, will be included in a special report issued on Sept. 28.
By Steven Roll
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