Marketplace Fairness Act Stalled in Congress

According to McClatchy DC, "the issue is stuck in the House Judiciary Committee, which has jurisdiction over state taxation affecting interstate commerce. The main point of contention has been whether the sales tax charged should be based on the rate where the buyer lives, as advocates of the Marketplace Fairness Act prefer, or on the rate where the seller is, an alternative offered by House Judiciary Chairman Robert Goodlatte, R-Va.

"A Judiciary aide said ideas had gone through several iterations and that the committee continued to work with all interested parties to find common ground. But lobbyists familiar with fruitless negotiations to find a compromise say retailers consider Goodlatte’s latest proposal so unworkable that they worry it’s actually intended to derail the entire process.

"Retailers are hinging their hopes on a bill being drafted by Rep. Jason Chaffetz, R-Utah, that would place limitations on states auditing businesses outside their borders. The language comes in response to complaints from online vendors such as eBay and Overstock.com. They say the Marketplace Fairness Act as proposed by the Senate would create a compliance nightmare for small businesses, which would have to keep track of more than 9,000 state, local and municipal tax codes."

See the entire story HERE.

Read more here: http://www.mcclatchydc.com/2015/05/07/265920/bid-to-collect-online-sales-taxes.html#storylink=cpy