DMA Says No to Latest Use Tax Proposal

The Direct Marketing Association took a stand against a proposal by state tax commissioners on Tuesday meant to simplify the state use tax rates.

“Under the proposal, the states could continue to not only have 7,600 tax jurisdictions across the country, but each state could have a second state-wide rate, meaning interstate sellers could be confronted with 15,200 varying rates,” said a DMA statement.

The U.S. Supreme Court ruled in two cases–National Bellas Hess in 1967 and Quill in 1992–on the issue of whether a marketer should be collecting sales or use taxes in a state where the marketer does not have nexus or physical presence.

The tax commissioners could not be reached by press time.